Tower Bridge GP Limited v The Commissioners for HMRC

Tower Bridge GP Limited v The Commissioners for HMRC

A taxable person cannot exercise the right to deduct input VAT without holding a valid VAT invoice containing the supplier’s VAT registration number and the customer’s name, as required by EU and UK law. The absence of these essential elements is fatal to the claim, and HMRC’s refusal to exercise discretion to allow deduction was lawful.

Parties
Appellant: Tower Bridge GP Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
18 July 2022
Procedural Posture
Civil Appeal (tax) / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
VAT Deduction, Input Tax, Formal Requirements for VAT Deduction, Discretion of Tax Authorities, Validity of VAT Invoices
Tax Law European Union Law VAT Deduction Input Tax Formal Requirements for VAT Deduction Discretion of Tax Authorities Validity of VAT Invoices

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Parties

Tower Bridge GP Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Civil Appeal (tax) / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal

Legal Issues

  1. 1 Whether a taxable person is entitled to deduct input VAT without holding a valid VAT invoice as required by EU and UK law.
  2. 2 Whether HMRC unlawfully exercised their discretion in refusing the deduction.

Ratio Decidendi

A taxable person cannot exercise the right to deduct input VAT without holding a valid VAT invoice containing the supplier’s VAT registration number and the customer’s name, as required by EU and UK law. The absence of these essential elements is fatal to the claim, and HMRC’s refusal to exercise discretion to allow deduction was lawful.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.