Vatable businesses are entitled to recover input, however the rules governing input Vat Recovery can become difficult in the absence a definition of what it means for a supply to be for the purpose of a business.
To help you in determining if Input Vat is recoverable find below the general conditions that need to be met.
General Conditions.
- The supply must have been made by a taxable person in furtherance of their business and made to a taxable person claiming the deduction.
- The recipient should intend to use the supply for their business.
- There must be a link to a taxable transaction and input Vat should be correctly charged.
Given, the volume of Vat cases in this area- this is clearly a difficult area. Especially, when one considers what is meant by “ for a business purpose” and the need to consider if the supply was in the furtherance of the business accordingly the intention behind the purchase becomes a consideration.
If you have any question on Input Vat Recovery please contact us.
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