Reclaiming VAT

Persons engaged in taxable, exempt and non-business activities

Where costs relate to taxable, exempt and non-business activities, you must apportion the costs to determine what Value-Added Tax (VAT) you can reclaim. You can only reclaim that proportion of the VAT which has been used for your taxable activities.

The proportion calculated must correctly reflect:

  • the extent to which the costs are used for your taxable supplies
  • and
  • must have due regard to the range of your total supplies.

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