Industry sector:

Care home: VAT repayments

VAT repayments may be made to VAT registered businesses if they pay out more in VAT on their purchases than they charge on their sales.

However, the provision of nursing and residential care is exempt for VAT purposes and businesses are unable to recover the VAT on purchases of goods and services used in making these exempt supplies.

Unless you have been advised that your business will be making a supply of goods or services that are taxable for VAT purposes, enter zero in the cash flow under VAT Repayments.