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HMRC internal manual

VAT Fraud

Basic interventions: input tax interventions: supporting a claim to input tax: where the VAT invoice held is deemed to be invalid: where the invoice is deemed to be invalid - when use of HMRC’s discretion should not be considered

There are instances where you should not exercise HMRC’s discretion, as follows.

  • If the taxable person can still go back to the supplier to obtain a proper VAT invoice then he must be requested to do so, as per VATF42423.
  • If you have already exercised HMRC’s discretion once then there is no requirement to exercise HMRC’s discretion again and you should not do so. In such instances you should follow the guidance at VATF42423 and request that he obtain a valid VAT invoice.

If you have any questions regarding the use of HMRC’s discretion please contact the VAT Fraud Team.