Six vital facts you MUST know about notional input tax claims
'Input tax claims'. These three words are often misunderstood by Vat vendors.
In fact, Natalie Cousens, the Managing Editor of the Practical Vat Loose Leaf, says many companies think if they get a tax invoice, they can automatically claim the Vat they pay as notional input tax.
It's not as simple as that. You have to play by the rules when it comes to input tax claims. For instance, you can only claim input tax on certain items. And don't even get us started on the rules when it comes to claiming input tax on second-hand goods.
But there's no need to panic if you're still unsure about input tax claims.