If a sole trader is VAT-registered and is invoiced by another sole trader who is not (yet) charging VAT, what's the position from the point of view of the first sole trader claiming something back from revenue?
In other words, they're putting these services down as an expense for their business.
My impression has been that you could only get something back on a service(or product) paid for if that service had VAT added. Is this correct?
And if not then what is the basis for calculating it?
In other words, they're putting these services down as an expense for their business.
My impression has been that you could only get something back on a service(or product) paid for if that service had VAT added. Is this correct?
And if not then what is the basis for calculating it?