VAT-registered businesses can claim Input tax against the goods and services they buy/use, and this Input tax could adjust to output tax, reducing the amount of VAT to pay to HMRC. But the business should get help from a VAT adviser to ensure they get all the VAT refunds they entitle to.
Input tax is the VAT incurred by a VAT-registered company on its business expenses. Typically, it can be offset against the output tax that the business charges on its sales, with the net amount owed to HMRC.
When:
Moreover, This was a decision of First Tier Tribunal in a recent case a bed and breakfast business accounted for and claimed input VAT on the rent where they entitle to claim the same in the absence of a valid invoice.
Star Services Oxford Limited v HMRC (TC08573)