Understanding VAT Recovery
When you see a price of £100 and are informed that VAT is recoverable, do you assume that this amount is inclusive or exclusive of VAT?
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VAT recoverable help
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If you’re told that something costs £100 and that VAT is recoverable, it generally implies that the price is VAT exclusive. This means the £100 does not include VAT, and you would need to calculate the VAT on top of that amount.
For example, if the VAT rate is 20%, the total cost including VAT would be £120 (£100 + £20 VAT). However, it’s always a good idea to clarify with the provider to ensure there’s no confusion.