VAT is normal means-

To allow a business to recover input VAT from HMRC a supply of goods or services has to have taken place. The goods or services that have been supplied must have a direct and immediate link with a taxable transaction. The supply must have been made to a taxable person for a business purpose and VAT must have been correctly charged. Input VAT incurred is available for credit in the period in which it arises and is deducted from output tax owed in the same period. If the input tax for a given period is greater than output tax HMRC make a payment for the net amount. Where a business makes both taxable and exempt sales the trader will required to identify what input tax relates exclusively to each type of supply. Input tax incurred solely in relation to taxable supplies is recoverable by normal means. There will be instances where input tax incurred cannot be attributed to either taxable or exempt supplied exclusively – this is “residual” input tax. Residual input tax must be apportioned to determine the extent to which it relates to taxable supplies. Under a system previously known as the 8th VAT Directive refund system, a business that incurs VAT on costs in an EU member state where it is not registered and does not make supplies is entitled to recover VAT directly from that member state. Non-EU businesses are able to reclaim UK VAT via the 13th directive provided that there is a reciprocal arrangement allowing a UK company to reclaim indirect taxes paid in that country although input tax is blocked on items such as business entertainment costs or costs relating to any exempt supply