Freelance + VAT question

[easily-lost]

In principle, trading should be VAT-neutral. In other words, if you have no way of reclaiming VAT which you have paid on your imported purchases, then you should not be paying it in the first place. Otherwise, there would be unfair competition between suppliers from different countries. The same argument does not apply to hotels and taxis, though, which are used where they're paid for.

Just a rough picture that goes to Balance Sheet:

VAT to be paid = VAT payable - VAT receivable