Input VAT treatment for Part Exchange items

as a VAT registered business selling to another VAT registered business if the customer part exchanges and item in part payment, can I deal with the input VAT internally rather than getting an invoice from the customer. I provide a full value VAT invoice to them so my Output is correct, however if I cant get a VAT invoice from the customer for their sale to me, is there a way I can deal with this so I can recover the input on the purchase from them?

Hi,

If goods are part exchanged, then they are seen as 2 separate transactions for VAT purposes. If both parties are VAT registered then VAT invoices would need to be issued by both parties.

You would need to request this invoice as it is a legal obligation to raise one.

You can find further guidance here:

VAT guide (VAT Notice 700)

Thank you.