Business Insurance Vat
Business Insurance Vat
Cold comfort
VAT increases and benefit changes will hit poor
How long do you work for the tax man?
VAT Accounting Revision?
Hi
I am confused as to which companies can or can’t reclaim VAT from their inputs.
Is it correct that a food business cannot reclaim VAT because the food it sells is VAT free?
Also an insurance company cant reclaim VAT?
Many thanks
It is complicated because there are various de minimis limits that apply but essentially businesses that sell vatable goods and services (even if the goods and services are vatable at 0% such as a business that sells zero rated food) can recover the VAT on their inputs but businesses that supply exempt goods and services (such as insurance) cannot recover the VAT on their inputs. Download VAT700 from the HMRC website and this should give you a broad outline of which supplies of goods and services are exempt or outside the scope of VAT (in which case you can’t recover input tax) and which are subject to VAT (even if the rate of VAT applicable is zero), in which case by and large you can recover input VAT