VAT Invoice

pould

Can I clarify a point of law please?

i) Does a valid VAT invoice for a parking charge require a clear separation of the charge and the VAT applied? In other words, am I correct in thinking simply slapping a VAT number on the bottom of an invoice does NOT constitute a valid VAT invoice?

ii) If this is the case, is a suitable defence against the claim of the PPC that a charge is NOT a breach of contract but rather an agreed charge for parking the following - "Your Honour, this CANNOT be an agreed charge (and therefore is a penalty for breach and such penalty must have a reasonable GPEOL) for parking because if it was, the PPC are admitting they did not issue me a valid VAT invoice and are therefore contravening VAT law"?

Hot_Bring

i) Yes, any invoice that contains an element of VAT should have the VAT shown as a separate line item.

ii) Depends on the wording of the signs. If the charge is for a breach of contract then no VAT is applicable. If on the other hand they claim the charge is a charge for parking then VAT is applicable.

pould

Hot_Bring wrote: »

i) Yes, any invoice that contains an element of VAT should have the VAT shown as a separate line item.

ii) Depends on the wording of the signs. If the charge is for a breach of contract then no VAT is applicable. If on the other hand they claim the charge is a charge for parking then VAT is applicable.

ii) Yes, that's my point. If there is no breakdown of VAT then it MUST be a breach of contract claim otherwise they are admitting they're not abiding by the law re VAT.

Thanks for your help.

Hot_Bring

pould wrote: »

ii) Yes, that's my point. If there is no breakdown of VAT then it MUST be a breach of contract claim otherwise they are admitting they're not abiding by the law re VAT.

Thanks for your help.

Indeed but good luck in making them understand that !

The_Deep

Her is the HMRC guidance


https://www.gov.uk/vat-record-keeping/vat-invoices


I do not see how a judge could misunderstand. If v.a.t. has not been properly accounted for, the claim must for breach, and GPEOL must be considered. If a judge fails to agree an appeal that the judge has misunderstand the law would seem to be appropriate.

Quentin

pould wrote: »

Can I clarify a point of law please?

i) Does a valid VAT invoice for a parking charge require a clear separation of the charge and the VAT applied?....

It depends on the total value of the invoice.


You don't have to separate the VAT from the total if the total is less than £250

pould

The_Deep wrote: »

Her is the HMRC guidance


https://www.gov.uk/vat-record-keeping/vat-invoices

Awesome. That means any PCN without a full VAT breakdown is clearly a claim for breach of contract otherwise the PPC would be admitting in court that they haven't complied with VAT regulations.

bazster

Quentin wrote: »

It depends on the total value of the invoice.


You don't have to separate the VAT from the total if the total is less than £250

But you still have to show the VAT rate charged, which they never do. So it still ain't a VAT invoice, and if it appears to be an invoice for a contractual charge they should be reported to HMRC for suspected VAT fraud.

As regards a civil case brought by a PPC, that they may have broken the law on VAT doesn't necessarily invalidate the claim, but the fact that it's not a valid VAT invoice is persuasive that they are actually lying when they claim it's a contractual charge.

pould

bazster wrote: »

But you still have to show the VAT rate charged, which they never do. So it still ain't a VAT invoice, and if it appears to be an invoice for a contractual charge they should be reported to HMRC for suspected VAT fraud.

As regards a civil case brought by a PPC, that they may have broken the law on VAT doesn't necessarily invalidate the claim, but the fact that it's not a valid VAT invoice is persuasive that they are actually lying when they claim it's a contractual charge.

Yes, and of course a statement in court from the PPC as to whether it is or isn't a VATable charge would be terribly useful to HMRC.... It's not necessarily about helping to win the individual case, it's about helping to stack up the evidence for a wider claim against a PPC.

stator

I doubt most Judges would take your point. The fact that a PPC might not be paying their VAT is immaterial to the case of a parking breach. He will likely suggest that you report them to HMRC and then ignore the issue.

pould

stator wrote: »

I doubt most Judges would take your point. The fact that a PPC might not be paying their VAT is immaterial to the case of a parking breach. He will likely suggest that you report them to HMRC and then ignore the issue.

You misunderstand what I'm saying. The point of the question is that if a PPC states in court that the charge IS contractual (as opposed to a breach of contract) then that is a clear public statement. It supports the HMRC in judging whether the PPC willingly knew they were violating VAT regulations.