Recovering vAT versus claiming it as an expense

The vAT that you do not reclaim will have to be passed on to your customers in your sales. For example: purchase €10 + €1.21 vAT = €12.1 purchase price. You sell this on: €12.1 x 1.3 (profit) = €15.73 x 1.21 vAT gives a selling price of €19.03. If you enter the vAT (which is the correct way if you are subject to VAT) €10 x 1.3 profit = €13 x 1.21 = €15.73 selling price. You will therefore have higher selling prices if you do not enter the vAT correctly. You can recover vAT on everything you invest or enter as costs, so it would be unwise not to take advantage of this. Of course, all this only applies if you choose to start a subject to VAT business. I have no experience with non-subject to VAT businesses, which are only possible if your turnover or profit remains below a certain amount.