Can businesses claim VAT on expenses incurred?

VAT can be claimed by businesses in the following situations:

 

  1. If the company is VAT registered, they can claim a refund on expenses (the end consumer cannot claim any input tax refund).
  2. VAT must be correctly charged (i.e., unduly charged VAT is not recoverable).
  3. Businesses must have proper documentation (such as a valid VAT invoice) demonstrating that the VAT has been paid.
  4. Only the amount paid (or intended to be paid) within 6 months of the supply date is eligible for a VAT input tax refund.

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