The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of when input tax can be reclaimed and should be read in conjunction with the What is input tax and other notes in the ‘Claiming input tax’ subtopic.
See our interactive flowchart outlining the procedure for claiming input tax. Alternatively, for a static pdf version, see the Flowchart ― procedure for claiming input tax.
If a business meets the requirements outlined in the What is input tax guidance note and the goods and services purchased, acquired or imported by the business will be used in respect of its taxable business activities, then the VAT can be recovered in full.
There are, however, exceptions to the general rule and they are explained below.
Not all input tax incurred can be recovered. For example, certain items of input tax are specifically blocked by legislation or for goods sold using a ‘margin scheme’ any associated input tax is not recoverable. A summary of the items where all or part of the input tax cannot be claimed is below together with a link to the relevant guidance note that provides further information:
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