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Before any VAT can be deducted as input tax the following criteria must all be met:

• the amount to be claimed must actually be VAT properly charged by another taxable person or relate to a taxable importation or acquisition;
• supplies on which the tax was charged must be made to the person seeking to claim the input tax;
• the specific supplies must have been incurred for the purpose of the business;
• the supplies must normally be received in the accounting period in which the claim is to be made;
• the person seeking to claim input tax must hold satisfactory documentary evidence of the supplies in support of his/her claim; and
• supplies received must not be subject to input tax restriction in the form of a Treasury ‘blocking orderâ€�.

»Ê¹ÚÌåÓýappre are many reasons why a claim to input tax can be denied, such as:

• no taxable supply (VATF42200);
• supplies on which the tax was charged was not made to the person seeking to claim the input tax (VATF42300);
• insufficient evidence to support the claim (VATF42430);
• the invoice is invalid (VATF42420);
• the supplies have not been paid for (VATF42500);
• the input tax was incurred by a taxable person who has relied on his right to deduct for fraudulent ends (VATF42600).

»Ê¹ÚÌåÓýapp above list is not exhaustive.

»Ê¹ÚÌåÓýapp Input Tax guidance manual provides guidance on what can be treated as input tax and when that tax can be properly claimed.