Hello, our company is introducing the strict “No PO no Payment” policy and we would like to make sure whether the rejection of supplier’s invoices in case of missing PO number is possible. Assuming the invoice fulfills all UK VAT invoicing requirements but is lacking the PO number that is required by our policy, are we still allowed to reject the invoice and ask the supplier to correct it? If not possible on the grounds of the VAT law, can we contractually oblige the supplier to add the PO number as a compulsory element of the invoice and reject the invoices if it is missing?
If the supplier agrees to correct the invoice, can we also assume that only the second invoice, with added PO number, should be treated as the correct invoice to support our input tax deduction rights in the period of its receipt?
We would like to avoid the situation when we receive an invoice without PO which we reject and thus we do not claim input tax in the period of its receipt and HMRC will consider this to be an error.
Thank you very much for your support.