Originally Posted by
JimmyTheJock
On a point of information; it's not only air travel but also rail and road travel, including taxis which are all VAT exempt.
But taxi driver / operators will register for VAT so they can claim the tax back on fuel and repairs / servicing bills.
If fares are VAT exempt, taxi driver / operators cannot register for VAT and cannot can claim the tax back on fuel and repairs / servicing bills.
As fares are 0% VAT , taxi driver / operators can register for VAT so they can claim the tax back on fuel and repairs / servicing bills.
You cannot reclaim VAT unless you charge VAT even if the VAT is a zero value - its all legal language.