VATAFRS0250 - Operation of the scheme: reclaiming the flat rate addition

VAT-registered traders who are charged the flat rate addition (FRA) are allowed to reclaim the amount charged as though it were input tax. »Ê¹ÚÌåÓýappy should reclaim the amount on their VAT return in the normal way, but must first make sure that they obtain a valid invoice from the flat rate farmer.

If a VAT-registered person is charged the FRA but:

  • no invoice is issued, or
  • the invoice issued does not contain all the particulars required by the regulations,

the VAT-registered person will not be entitled to reclaim the amount charged; and any such claim should be disallowed.

In addition, if a VAT-registered person has been charged the FRA on non-designated supplies, there is no entitlement to recover the charge.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)