VAT News:

HM Revenue & Customs Win Important Tribunal Victory

This case involves the trader Pexum Limited and Customs' action to disallow £1.5 million of Input Tax (VAT) as the invoices did not adequately describe the goods in question, contrary to Article 22(3) of the Sixth Directive and/or VAT Regulation 14(1)(g).

The Tribunal Chairman concluded: In our judgment, the invoices held by Pexum in support of its claim for input tax deduction, were not valid VAT invoices for the purposes of the VAT Act or the VAT Regulations since they did not give a "description sufficient to identify the goods ... supplied", as required by Regulation 14(l)(g). Likewise those invoices did not contain details of "the ... nature of the goods supplied" as required by Article 22(3) (b) of the Sixth Directive. If any goods were supplied by Pexum at all:

1. the goods that were in fact supplied were not capable of being described as "CPUs", having regard to their physical characteristics and their lack of functionality; and/or
2. the goods that were in fact supplied were not in any event genuine Intel P4 2.8GHz 800 CPUs or capable of being described as such.

We therefore hold that Pexum had no right to deduct the input tax claimed because its purchase invoices described the goods purportedly bought by it as "Intel P4 2.8GHz 800" CPUs, manufactured by Intel.

For the full decision, please click here

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