Recovering VAT Task

VAT:

  • can only be recovered on eligible services
  • cannot be recovered on the purchase of goods
  • will be charged at the standard rate of 20%, the reduced rate of 5% or at zero rate
  • is not charged on supplies out of scope of VAT or exempt from VAT

If an invoice bills for both eligible services and goods, split the costs out and apply the appropriate VAT code to each part separately.