### Example: 1. **Non-VAT Registered:** - Purchase price…
### Example:
1. **Non-VAT Registered:**
- Purchase price from supplier: £100 + £20 VAT = £120
- Sell to customer: £150 (no VAT to charge)
- Total VAT paid: £20 (cannot reclaim)
### Example:
1. **Non-VAT Registered:**
- Purchase price from supplier: £100 + £20 VAT = £120
- Sell to customer: £150 (no VAT to charge)
- Total VAT paid: £20 (cannot reclaim)