Certified Meeting Professional (CMP) Practice Exam

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Who is eligible to reclaim VAT?

Both companies and individuals
Only individuals
Only companies
Neither companies nor individuals

The correct answer is: Only companies

The ability to reclaim Value Added Tax (VAT) is typically reserved for registered businesses, which are usually structured as companies. This means that companies can deduct VAT on their business-related purchases and expenses, provided they are VAT registered and follow the regulations set by their government related to VAT claims. Individuals, on the other hand, do not typically have the same rights to reclaim VAT unless they are engaging in activities that qualify them as a business or have a specific exemption under certain circumstances. Thus, the general rule is that only companies, which are recognized entities involved in economic activities, have the right to reclaim VAT. This is why the correct understanding centers on the eligibility being primarily for companies.