- Sammy Garden Ltd appealed HMRC’s decision that output VAT was due from the company’s effective date of registration, not from the later date when the VAT registration number was issued.
- The FTT dismissed the appeal.
- The company was a successor to a landscape gardening company previously operated as a sole trade.
- The company submitted a VAT 1 form to register for VAT.
- The FTT concluded that HMRC acted reasonably in accepting the VAT 1 form at face value.
- The effective date of registration was the date the company stated it was taking over the existing business.
- There was a delay of two months before HMRC issued the VRN.
- The company argued that not having the VRN prevented it from issuing VAT invoices and thus it had no liability to account for output VAT in the period between the EDR and the issuing of the VRN.
- The FTT disagreed, stating that the legislation is clear that a taxable person is liable to account for and pay VAT on its supplies of goods or services made in the United Kingdom.
- The FTT also stated that HMRC’s guidance does not advise that invoices should be backdated.
- The liability to account for and pay VAT on supplies is not dependent on this guidance.
Source: claritaxnews.com
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.
