VATF42200 - Basic interventions: input tax interventions: no taxable supply
For a taxable person to reclaim input tax a supply for VAT purposes of either goods or services must have taken place (VATF34000). Where no supply for VAT purposes has taken place there is no entitlement to deduct. This not only applies where the taxable person has made a supply but also where the taxable person has received a supply.
VATSC30120 provides guidance on non-existent goods.
VATF34720 provides guidance where an invoice purporting to be a tax invoice has been issued.