Andrew Needham looks at input tax claims on employee purchases for the business.
Employees often purchase goods or services on behalf of their employers. This can happen when away on business, entertaining clients, making petty cash purchases and buying fuel.
An employee can use the business’s own money from petty cash, corporate credit or purchasing cards or their own money, claimed back through the business’s expense system.
Problems with VAT recovery
One of the requirements for recovering the VAT on purchases is that the invoice should be properly addressed; in other words, it is addressed to the VAT registered business.
The main problem with recovering VAT on employee purchases is that the purchase invoices are not always addressed to
