The only VAT which may be recovered by a taxable trader is that which falls within the definition of input tax. ‘Input tax’ is defined as follows:

‘… “input tax”, in relation to a “taxable person”, means the following tax, that is to say–

(a)VAT on the supply to him of any goods or services;

(b)VAT on the acquisition by him from another Member State of any goods; and

(c)VAT paid or payable by him on the importation of any goods from a place outside the Member States,

being (in each case) goods or services used or to be used for the purpose of any business carried on or to be carried on by him.’

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