A taxable person must charge value added tax (VAT) on taxable supplies of goods and services that it makes. Where a taxable person has itself suffered VAT on goods or services that it has received, it will be able to recover that VAT (as input tax) from HM Revenue & Customs provided that the VAT is attributable to a taxable supply that it has made (or will make) and it holds appropriate evidence of this (section 24, Value Added Tax Act 1994 (VATA 1994).)

For further information, see Practice note, VAT: input tax.