What type of documentation is essential for supporting VAT claims?

The essential documentation for supporting VAT claims includes proper invoices or receipts that meet the criteria set by HMRC (Her Majesty's Revenue and Customs). In order to reclaim VAT, businesses must provide evidence that demonstrates they have incurred the VAT in question as part of their business activities. Proper invoices, which must contain specific information such as the seller's details, the amount charged, and the VAT amount, serve as the primary proof of purchase necessary for validating these claims.

Following HMRC guidelines ensures that the invoices or receipts clearly state that VAT was charged and provide a clear outline of the transaction, which is crucial for both compliance and the successful processing of VAT claims. Without this type of documentation, any claim for a VAT refund would be hard to substantiate, potentially leading to rejection by HMRC.

Other types of documentation, though useful for different purposes, do not fulfill the criteria needed for VAT claims. For instance, bank statements can validate payments made but do not specify the details required to confirm the VAT charged. Similarly, sales orders and delivery slips may provide context about the transaction but lack the specificity of a proper invoice. Internal memos and reports are typically not relevant to VAT claims since they do not provide the necessary evidence that VAT was incurred on a sale.