Could someone please clarify my understanding of a VAT point for zero rated businesses. I'm pretty sure I know the answer but it would be nice to have this confirmed before I meet a prospect this afternoon.
This prospect (sole trader) sells pies at farmers markets and similar. Now I know I need to confirm that these are sold cold to be consumed away from his stall (i.e.: no seating area outside his stall) for the supply to be zero rated, but at this stage I'm pretty sure this is the case.
Obviously he would charge no VAT on the supply and can claim all of his input VAT back. I just need to confirm that the reclaimed input VAT isn't assessed as income on his self assessment. I don't believe it is but it seems a pretty good scheme if not - so good that I'm wondering if I've missed something.
Thanks in advance