Can businesses claim VAT on expenses incurred?
VAT can be claimed by businesses in the following situations:
- If the company is VAT registered, they can claim a refund on expenses (the end consumer cannot claim any input tax refund).
- VAT must be correctly charged (i.e., unduly charged VAT is not recoverable).
- Businesses must have proper documentation (such as a valid VAT invoice) demonstrating that the VAT has been paid.
- Only the amount paid (or intended to be paid) within 6 months of the supply date is eligible for a VAT input tax refund.