Reply to post: @Headley_Grange: Clients claim the VAT back

20% of UK businesses would rather axe their contractors than deal with IR35 – survey

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@Headley_Grange: Clients claim the VAT back

Maybe it works differently in the UK, but here (and when I was in Ireland, at the time) orgs that don't charge VAT (i.e. supply exempt goods or services) end up paying VAT on their inputs, and there's no claim back.

However, if the UK treats B2B differently to B2C and even businesses charging their customers no VAT can get it refunded from the HMRC instead of their customers, then my comment is wrong.

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