- This topic has 2 replies, 2 voices, and was last updated 11 years ago by
.
- Posts
Hello Sir, can you please clarify one thing. It’s said that input vat on zero rated supplies is recoverable, yet we do not include it while calculating vat payable… Why is that? We only include the standard rated in vat payable calculation… How exactly is the input vat recoverable then?
Hi Alee, I think you have misunderstood the statement, Clearly no VAT (output tax) is charged on zero rated supplies (SALES!).The issue that we are referring to is that any INPUT tax that the business incurs on PURCHASES and EXPENSES that relate to those sales (outputs) can be recovered! The business incurs standard rate VAT on its purchases and expenses but charges zero rate on its sales allowing the business to recover that input VAT from HMRC as a repayment.
- You must be logged in to reply to this topic.