Can businesses claim VAT incurred on expenses?
Businesses can claim VAT under the following circumstances:
- If the business is registered under VAT, they can claim a refund on expenses (the end consumer cannot claim any input tax refund).
- The VAT should be charged correctly (i.e., unduly charged VAT is not recoverable).
- Businesses should have proper documents (such as a valid VAT invoice) showing that the VAT is paid.
- VAT input tax refund can be claimed only on the amount paid (or intended to be paid) within 6 months after the supply date.