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VAT recovery for employment bureaux

As described at V6.235, employment bureaux generally make taxable supplies and so are able to recover the VAT they incur, subject to the normal conditions. Input tax and the normal rules for recovery are described generally in Division V3.4.

However, some bureaux will have exempt activities such as the provision of healthcare services as described under 'Healthcare staff and employment bureaux' at V6.235. If the only supplies made are exempt supplies, the bureau will not be able to register for VAT and as a non-taxable person, a bureau will not be able to recover any VAT incurred. For registration in general, see Division V2.1.

It is possible that a bureau may make a mixture of exempt and taxable supplies. For example, it may provide exempt welfare services as principal but also make taxable supplies of introductory services as agent (see 'Healthcare