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vAT from purchases if you are vAT exempt

RJ
25/12/2023
Question

Dear Sir/Madam,

What about VAT on purchase invoices if you are not subject to VAT yourself because your turnover is less than €25,000? You cannot invoice VAT yourself, so how do you recover this difference?

Thanks in advance,

Rudi Jetten

Hi,

You cannot recover that difference. Since you are exempted from VAT, you are not actually participating in the whole VAT system. You uncheck the box in step two 'include in vAT declaration' and in step three, when filling in your amounts, you enter the same amount (the total amount) for VAT incl. and excl. The full amount will then be included in your expenses. Best regards, Adrie

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