Different types of businesses charge VAT at different rates and this means when you are buying goods and/or services, you reclaim at the rate and amount shown on the invoice. You may find that you cannot reclaim VAT on some of your largest expenses such as rent and insurance premiums. You need to look at the purchase invoice to work out what can you claim vat back on. You can only claim the amount of VAT as described on the invoice.
In addition, you can only recover input VAT in the furtherance of your business, that is, on expenses for a business purpose. An example of expenditure not for business would be personal expenditure or entertainment. So, for example, if you are taking out clients for a meal, you cannot reclaim the input VAT on this. Or, if you purchase a TV for your home, this is non-business related and input VAT cannot be claimed. There are several tax traps to be aware of so contact us for a free non-obligation chat.