Input VAT recovery - 100% supplies now made to USA

Input VAT recovery - 100% supplies now made to USA

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Hi All

We develop bespoke business software and sell on licences via distributors / packagers.

Our customers were previously mainly UK based but are now solely based in the USA.

We don't recover much by way of input tax due to the nature of our cost base i.e. largely salaries.

However, we don't want to claim input VAT that we shouldn't, which may later down the line add up to a sizeable back tax.

We are UK based.

Is anyone able to confirm whether or not we are correct in continuing to recover 100% of our input VAT?

Many thanks.

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By shaun king
26th Nov 2013 08:12

Yes you can

Simple answer is you are making taxable supplies - ao akk the Input Vat is recoverable.

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