We were somewhere around Barstow, on the edge of the desert, when the drugs began to take hold. I remember "The Medway Handyman" saying something like:
I think I understand that. I think it means "Incidentally claiming VAT back
>on stuff that is not passed on to a third party is also fraud".
>
>I understand it is complete bollox.
Of course it's bollocks. If I, as a VAT-registered entity, buy something with VAT on it and keep it for my own company use, I'm perfectly entitled to claim the VAT back. I registered for VAT, bought a van, claimed the VAT back, then de-registered the following year. VATman was not happy, but it was quite legal. Apart from the upside of getting the refund, I found VAT to be a total pain in the arse and my customers didn't like it either.