VAT Reclaims

One of our most commonly asked questions is ‘Can I claim VAT back on purchases for goods or services I made prior to registering for VAT?’.


The short answer is yes!


Before you get too excited, there are some rules surrounding this you should be aware of…


Firstly, you can generally reclaim VAT on goods you bought up to 4 years before you registered for VAT and services you bought up to 6 months before you registered…as long as the following conditions are met;


1. The goods were bought by you as the entity that is now registered for VAT

2. The goods are for your VAT taxable business purpose

3. The goods are still held by you or they have been used to make other goods you still hold


You cannot reclaim VAT on these goods;


1. Goods that you have completely used up before you registered for VAT (e.g petrol, electricity or gas)

2. Goods that you have already sold or supplied before being VAT registered

3. Goods that relate to supplies you make that are exempt from VAT


You can reclaim VAT on services you bought during the 6 months before you registered for VAT if the following conditions are met;


1. The services were bought by you as the entity

2. The services are for your VAT taxable business purposes


You cannot reclaim VAT on these services;


1. Services that relate to goods you disposed of before you were VAT registered

2. Services that relate to goods or services you supplied that are exempt from VAT


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