In many cases a credit is immediately given for this as input VAT.

However, there is no right to deduct input VAT if he:

He had deducted the input VAT on each occasion.

Consequently, for cases of mixed use, it would no longer be possible to deduct immediately all input VAT.

On the other hand there are certain exemptions whereby the supplier is allowed to deduct his input VAT.

Businesses, such as property investment companies, which may make wholly exempt supplies, cannot reclaim any input VAT.

Recovery of Input VAT is normally determined by the first use of goods.

Input VAT that is attributable to exempt supplies is not recoverable.

However the input VAT suffered on the goods and services purchased can be deducted from the amount of output tax owed.

Notably, it results in an inability to deduct input VAT, which in turn discourages investment.

The exporting company none the less is entitled to claim reimbursement of the input VAT paid on the purchase of those goods.

Lindöpark was therefore not entitled to deduct input VAT incurred on goods and services used for the purposes of that activity.

It can be argued that a management charge made by the holding company is a business activity, and input VAT incurred is fully recoverable.

The zero rating of food and allowing businesses to reclaim input VAT means that the government in effect subsidises the food industry.

Consequently, a taxable person cannot deduct input VAT where the transactions from which that right derives constitute an abusive practice.

Suppliers of insurance and financial services are increasingly able to allocate input VAT on costs incurred by them precisely to the output to be taxed.

Normally, any exempted contracts of this type do not carry the right to recover input VAT charged by subcontractors or associated contractors.

In three cases the Court spells out the conditions for deducting input VAT where the underlying transactions constitute an abusive practice.

On the other hand, this might be evidence of an emerging principle that input VAT attributable to any outside-the-scope supply should be allowable.

However, Turkish legislation does not contain provisions allowing refunds of input VAT to foreign taxable persons not established within the country.

Thus the high exempt income in that quarter had the effect of decreasing recovery of input VAT on overheads on the old portfolio."

As Cox was an insurance company it had (like many other financial institutions) a limited ability to recover input VAT incurred on fees paid for outsourcing services.

This Article gives Member States the flexibility to apply total or partial restrictions (for example flat rate deductions) to the right to deduct input VAT.

If your admissions are exempt from VAT, then no input VAT relating to associated costs will be recoverable by you either.

Polysar was, therefore, not entitled to recover input VAT under Art 17 of the EC Sixth Directive.