At the moment I have a care home which is VAT exempt. My question is, could a business such as mine, supplying a VAT exempt service, register for VAT and claim on the Input Tax only?
Thanks
Replies (2)
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No
The short answer is no. You can reclaim input tax that relates to vatable supplies (even if this is a zero rated supply) but if all your supplies are exempt, then you can't.
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I agree with the above, but do scrutinize the invoices you receive. They may not be correct. It may be that your suppliers are actually over-charging you VAT. There are zero/reduced rating provisions for e.g. construction/alterations to a disabled persons home. I am not sure if similar provisions extend to your situation.