VAT rebate??

L

lozza

Registered User
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Hi I am registered as a sole trader and am registered for VAT. Up until recently this was fine as I had just one consultancy business however I am winding this up now and now have an online baby clothing website which is 0% VAT rated. As I now am not charging VAT for my consultancy I have no VAT payments going out however with the set up of my website I have a lot of VAT added to bills which I have to pay. Can I claim this VAT back or how does it work?

thanks
 
Hi lozza,

As you may know, there is an important distinction between the zero rate of VAT and VAT exemption. While you are not currently charging the standard rate of VAT on your sales, you are engaged in a fully VATable business (i.e. the sale of baby clothes chargeable to VAT at 0%).

On this basis, you should be entitled to full VAT recovery on all costs incurred in relation to this business
 
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