DCF Question - What to do with VAT
Hi all, I am currently modeling the acquisition of a country club and while doing the DCF I have run into what I think is a very stupid question, but here it is:
The country club does not charge VAT to it's customers, but it has to pay VAT on its services. What happens to the difference between VAT charged (zero) and VAT paid? Is that an asset I can claim to the tax authorities? How do I account that VAT expense? Is it just an increase in COGS?