Reserach Report and Problem Analysis Report Essay

Reserach Report and Problem Analysis Report - Essay Example The audit led to a loss of a lot of money for Mrs. Roadway because she did not have any paperwork like a VAT invoice from the supplier to substantiate that she had paid VAT. The legal representatives for the Jeffersons Company maintain that she does not have the right to ask for a VAT invoice but they were willing to give her their VAT number. The reason given to Mrs. Roadway by the legal representatives for not providing a VAT invoice (i.e. no other customer has ever requested for a VAT invoice) is not sufficient enough to deny her the invoice. For Mrs. Roadway’s business proposal to be financially viable, she has to be able to reclaim this VAT from HM Revenue and Customs (HMRC) because the repayment will reduce her borrowings to a manageable level. However, without a valid VAT invoice from Jeffersons, reclaiming the VAT might become problematic. As a corollary this research report will cover the issues of whether a supplier is required to issue an invoice, when it should be issued and what it must contain. CONCLUSION: Value Added Tax (VAT) can be defined as a category of consumer tax charged for any manufactured consumer product. A VAT invoice is usually dispensed to purchasers who give substantial statistics and details to prove that they have an intention to claim back the VAT paid to the government. In order to acquire a VAT invoice there are a set of some very precise pre-details which must appear on the VAT invoice such as the name, address and VAT number of the company or enterprise that provided the merchandises. For continuous and excellent book-keeping, accurate VAT calculations and invoices are required (Ebrill, et al 2001)1 Mrs. Roadway has already made strides to hire a Private Wealth team which has handled her application to HMRC so that she can charge VAT on the leases and reclaim the VAT that she will pay to Jeffersons. As a result, she has the right to request a VAT invoice from Jeffersons solicitors so that she can have the right paper work to help her with the process of reclaiming the VAT. Mrs. Roadway had to needed a VAT invoice from Jeffersons’ solicitors because she had previously gone through problematic experience which was brought about by lack of a VAT invoice. The fact that Jeffersons’ solicitors has never issued a VAT invoice to any of their consumers, will help Mrs. Roadway and build up her case against Jeffersons’ solicitors. The pre-requisites put in place to guide the process of dispatching an invoice for purchases as denoted in Article 33 of the VAT Directive2 might make the process of acquiring a VAT invoice frustrating but it is considered important for regulation purposes. In Mrs. Roadways case, the guidelines denoted in the VAT Directive will help Mrs. Roadway show that she deserves to be issued with a VAT invoice from Jeffersons’ solicitors because as per the VAT Directive a potential beneficiary of VAT refund should be issued with a VAT invoice. REPORT: Primary Sou rce: Staatssecretaris van Financien v Stadeco BV, 2009: A primary ruling in relation to the explanation of art21 (1) (c) of the 6th Council Directive was offered. The ruling was that a VAT invoice should be issued to a potential beneficiary of VAT refund. This was in line with Article 33 of the VAT Directive. HMRC concisely states that a registered VAT member has an obligation to provide any VAT-registered clients with a VAT invoice