Businesses that make taxable supplies are allowed to recover VAT incurred on expenditure (known as 'input VAT') used for the purpose of making taxable supplies other than those items that are specifically blocked (see below).
Businesses that make only exempt supplies generally cannot recover input VAT. Businesses that make both taxable and exempt supplies can partly recover input VAT (explained further at 54.40) other than on those items that are specifically blocked.
VAT incurred on the following items of expenditure
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Web page updated on 17 Mar 2025 16:04