I am working with a CIC who are considering becoming VAT registered as their office rent includes VAT
Would they have to operate a partial exemption scheme or if they registered would they be able to reclaim all input VAT?
Any pointers in the right direction would be great
Thanks you
Replies (2)
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Do they make taxable supplies?
The key point in becoming VAT registered is that you must make taxable supplies, ie sell goods or provide a service which would attract VAT if the supplier were VAT regsitered. If you don't make taxable supplies you can't register.
If the CIC does indeed make some supplies that would attract VAT and some that don't then it would be partly exempt and not be able to reclaim VAT on some of its inputs.