VAT Tribunal Decisions

Unsatisfactory evidence

An appeal concerned whether or not the appellant company could claim input tax in respect of supplies made by an unregistered person. The appellant Sundial International purchased a consignment of blouses for £43 000 from a firm McStamper. The director of the appellant company showed Customs his receipt/invoice from McStamper showing that £43 000 including VAT of some £6 000 had been paid. However Customs found that the VAT number on the invoice was invalid being the number of McStamper Ltd a company which had been wound up. Customs therefore assessed the appellant for the input tax reclaimed. Sundial appealed on the grounds that proof of input tax had been supplied and that the tax had been paid in good faith not knowing that the invoice was incorrect.

Customs maintained that they were not satisfied that the...