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
- must have due regard to the range of your total supplies.
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