- The First-tier Tribunal (FTT) has released its decision in a case concerning VAT repayment claims by Heartlands House Limited (HHL).
- HHL provides services in the construction sector and registered for VAT in October 2018.
- HMRC disallowed the VAT claims, stating that HHL had not provided sufficient evidence of taxable supplies.
- HMRC argued that pro forma invoices did not reflect the work done, there was no planning permission naming HHL for some projects, and there was a lack of information about subcontractors.
- HHL argued that it had provided clear evidence of taxable supplies, including signed contracts and invoices.
- The FTT noted that HHL had provided evidence of payments to suppliers and contracts for construction projects.
- The FTT also noted that late and reduced payments from clients indicated that supplies had been made by HHL.
- The FTT concluded that HHL had provided sufficient evidence of an intention to make taxable supplies and allowed the appeal.
- Businesses challenged on their intention to make taxable supplies should carefully consider the evidence presented by HMRC.
Source: financeandtax.decisions.tribunals.gov.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
