In the instance where a client is providing VATable and VAT exempt services, and they calculate their recoverability on purchases VAT based on Revenue, am I correct in presuming that the recoverability % is calculated on the actual/invoiced sales for the period rather than the cash receipts for the period ... basically invoiced Vs Cash basis
Yeah I know that Revenue allow for the apportionment of VAT recoverability to be based on Sales with other basis (floor space etc) allowable upon agreement with Revenue. So it is correct to assume then that the Sales % is calculated on the sales invoices for the period rather than the cash received in relation to sales for the period