The very moment that I put in the reclaim for the VAT on the three aircraft that my business owns the and the VAT inspector stopped the reclaim payment an requested to visit the business.
Once the inspector had established that the business was "real" and not a front for cheap flying the repayment of the VAT was swift.
It is clear that if you think that registering for VAT is the route to cheap flying the VAT people are on to it ! I do know of some people who are "trading" to save themselfs the VAT but these have guys have been established a long time and got in before the VAT got wise to the trick and I guess the VAT can't do much about it.