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23 August 2011 / Neil Warren
Issue: 4318 / Categories: Comment & Analysis , VAT
NEIL WARREN uses practical examples to highlight when input tax can and cannot be claimed by a business


  • Expenses must relate to taxable supplies.
  • Mixed use expenditure.
  • Check invoices.
  • Input tax on supplies to overseas customers.
  • Alternative evidence may be used.

A couple of weeks ago I received the following input tax query from an accountant who was acting for a charity client:

‘The charity organises free training courses for disabled persons and its only source of income is a £100 000 donation from the business of the charity founder which is VAT registered. If we treat the donation as sponsorship income and register the charity for VAT can we then claim input...

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