Yes I saw that Joanne and still not sure of the answer, and when I can get past the robot I'm told they are experiencing a high volume of calls..
can anyone help? My client is selling his goods/services to a EU country. The components he buys to make the items have vat charged on them which he would normally recover....So, can he reclaim the full amount or does this come under partial exemption?
Georgie
-- Edited by Georgie on Friday 5th of August 2016 03:37:51 PM
Ok just re read the toolkit again and yes input tax is recoverable ....the areas of risk is if you try to recover vat on exempt supplies.mis that right Les?
I cannot see that Partial Exemption is relevant, unless he is making exempt supplies that you haven't mentioned.
If he is making taxable supplies into the EU, he can claim input tax in relation to those supplies. This is provided by s26(2) which HMRC generally don't publicise!
Perhaps you would describe (vaguely if your prefer) what he is buying and selling.
