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HMRC internal manual

VAT Fraud

Basic interventions: input tax interventions: supporting a claim to input tax: the need to hold a valid VAT invoice

At the time of deducting input tax the taxable person must hold proper evidence, which can be in the form of:

  • a tax invoice in accordance with the criteria set out in Regulation 14 of the Value Added Tax (General) Regulations 1995;
  • a ‘less detailed’ tax invoice where the tax inclusive value of the supply is £250 or less;
  • a self-billed invoice issued by an approved trader;
  • an authenticated receipt for stage payments in the construction industry.

Evidence for deducting input tax is dealt with in VIT30500, VIT31000 and VIT31200 of the Input Tax guidance manual. The requirements of a full tax invoice and guidance relating to the approval of self-billing arrangements are set out in VATREC, which contains the details required for full and less detailed tax invoices. The use and conditions of authenticated receipts is explained in Notice 708 Buildings and Construction.

Where the VAT invoice is deemed to be invalid you should read VATF42420.