VAT pre-registration supplies
October 31st, 2008
If registering for VAT, whether voluntarily or because you have to (2008 threshold is £67,000) be aware that it is possible to claim VAT back on goods and services incurred in the period prior to registration.
The deal is that you can claim VAT back on services received in the previous six months ( a service relates to anything where goods do not change hands – e.g. accountancy or training) or on goods received in the previous three years provided that the business still possesses them. This will tend to apply only to fixed assets or items still in stock. The business will need to have proper VAT receipts for these items and although VAT-registered suppliers are not obliged to provide VAT invoices to non-registered customers (though most will) there is a retrospective requirement to do so after registration.
This ‘one-off’ VAT win should be added to the business’s first VAT return as purchases.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
Articles by month
- April 2013
- February 2013
- June 2012
- May 2012
- April 2012
- March 2012
- November 2011
- March 2011
- January 2011
- November 2010
- June 2010
- April 2010