Only VAT-registered businesses can reclaim input VAT. You must be registered with HMRC and the goods or services must be used for business purposes. You cannot reclaim VAT on personal or exempt purchases.

Input VAT is the VAT you pay when buying goods or services for your business. You reclaim it by offsetting it against the output VAT you collect from customers on your VAT return.

Can I reclaim VAT on all business purchases?

No — some items are blocked from reclaim, including most business cars, business entertainment, and goods for personal use. Partial reclaims apply if you make both taxable and exempt supplies.

VAT Reclaim Estimator

Estimate the input VAT you can reclaim on business purchases. VAT-registered businesses can reclaim VAT paid on goods and services used for business purposes.

How it's calculated

Reclaimable VAT = Gross Amount × VAT Rate ÷ (1 + VAT Rate)
Net Amount = Gross Amount − Reclaimable VAT

Frequently Asked Questions

Who can reclaim VAT?: Only VAT-registered businesses can reclaim input VAT. You must be registered with HMRC and the goods or services must be used for business purposes. You cannot reclaim VAT on personal or exempt purchases.
What is input VAT?: Input VAT is the VAT you pay when buying goods or services for your business. You reclaim it by offsetting it against the output VAT you collect from customers on your VAT return.
Can I reclaim VAT on all business purchases?: No — some items are blocked from reclaim, including most business cars, business entertainment, and goods for personal use. Partial reclaims apply if you make both taxable and exempt supplies.