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in zero rate vat ,suppliers can’t tax on customers. then it is said that input vat is recoverable. so how is it possible? how can there be input vat
They could recover the VAT on the capital goods used in the business or on any other goods connected to supply of output goods that are zero VAT rated.For example, a bakery supplying zero rated food could claim back the input VAT charged on the oven used in baking as well as on electricity used in business.This ability to claim back input VAT is an important distinction between zero rated goods and exempt goods.With exempt from VAT outputs claims not allowed for input VAT.
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