SolvedVIT12100 | VAT Input Tax basics: the basic right to deduct principles
From HM Revenue & Customs · VAT Input Tax
A business that is registered for VAT can claim back VAT incurred on goods or services that form a cost component of its taxable supplies.
A business will only have incurred input tax if all the following conditions are met:
there has actually been a supply to it of goods or services;
the supply took place in the UK;
the supply was taxable at a positive rate;
the supply was made to the person claiming the deduction;
the recipient intends to use the goods or services for the purposes of their business;
the recipient was a taxable person at the time the tax was incurred or the tax was eligible for relief under regulation 111; and
the supplier was a taxable person at the time of the supply.
A taxable person is someone who is registered or who is required to be registered for VAT.