Supplier's Tax Invoice Format
Various supplier's Tax Invoice format is not comply as per VAT law directions i.e. multple line items need to report VAT%, Amount and total individually Or do not comply properly for Forex Invoice.
It is not possible for the receipent to call each supplier for the proper Tax Invoice format. If receipent claims VAT on such invoices, is there any issue/loss/ penalty on the receipent as well Or it only rest with the suppliers who non comply the relevant clauses for Tax Invoices.
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The recipient does have a responsibility to ensure that input is being claimed on correct/valid tax invoice. But practically many such issues are there and you could end up facing with a scenario of disallowance. Would suggest to take up issue with the supplier and if they fail to issue a proper tax invoice even then, you will have record of your pursuance and their refusal showing you had taken proper action on the matter
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Input VAT can only be recovered on valid Tax Invoice. The recipient should take it up with supplier to provide the correct document.
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Agree with Mr. Ujjwal...i have heard of scenarios where the supplier refuses to issue a correct invoice and the customer has this on record from the supplier, the FTA has taken a favorable view for the customer and goes ahead to penalise the supplier. Cant say how widely this is taking place. So this can be used as a last resort especially if the input claim is a material amount.
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