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Did the appellants make or intend to make taxable supplies?

By Andrew Needham, December 2023

This was an appeal against a decision by HMRC to disallow an input tax repayment claim submitted by the appellant for the VAT period 09/19. The input tax repayment was refused as HMRC considered that the appellant had not provided sufficient evidence to support the claim that it had made or had the intention to make taxable supplies. 

The appellant worked in the construction sector and contended that it had provided clear evidence of taxable supplies, in particular the tenders in respect of the work carried out which were signed as contracts, and it was also clear from the invoices and bank statements that the input tax had been incurred in respect of those supplies. In some cases, it had not been paid for the work carried out. 

HMRC could not see that there was any real evidence of taxable supplies having been made in the period covered by the first VAT return, as there had been no demand for payment and could not see that any payments made

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