Fount Construction Limited v The Commissioners for HMRC
Decision date: 18 April 2024
Neutral citation: [2024] UKFTT 340 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Fount Construction Limited appealed HMRC's refusal to allow recovery of input VAT on three Landcore Limited invoices which HMRC said failed to meet regulation 14(1)(g) and (h) invoice-description requirements. The Tribunal held the invoices did meet reg 14 because they described the supplies as "Building Works" and gave the full site address, and it rejected the proposition that invoices must contain enough detail for HMRC to determine VAT treatment without further enquiry. The appeal was allowed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal's ratio is that a general short description of the services (e.g. "Building Works") together with identifying information (such as the full site address) can satisfy regulations 14(1)(g) and (h); an invoice need only identify the supply and enable further enquiry, not be a complete repository of information allowing HMRC to determine VAT treatment from the invoice alone.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment indicated obiter that whether a very short description without any further identifying information would suffice is context-dependent (no definitive view given), and that payment of an invoice may be evidence that it sufficiently identifies/quantifies the supply but is not conclusive of compliance with reg 14.