Evidence requirements for VAT
HMRC has rules about what constitutes proof of expenditure that includes VAT that you can reclaim.
The level of proof required for purchases over £250 are more stringent than those for purchases under £250.
For purchases above £250 the VAT invoice must show:
An invoice number which is unique and follows on from the number of the previous invoice
The seller's name or trading name, and address
The seller's VAT registration number
The invoice date
The tax point (this is the point at which VAT is applied which may not be the same date the invoice was created)
The customer's name or trading name, and address
A description of the items or services being supplied
For purchases under £250 the invoice must show:
The seller's name and address
The seller's VAT registration number
The time of supply (tax point)
A description of the goods or services
It is worth bearing this in mind in case of a VAT inspection. It is always tempting to reclaim VAT on items where you don't have a VAT invoice if you know that the supplier is VAT registered but it could land you in trouble later on.
