The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides details of when VAT can be recovered by businesses who incur VAT before they register for VAT and once the VAT registration number has been cancelled. This guidance note should be read in conjunction with the What is input tax and Claiming input tax guidance notes.
Usually the right to recover VAT can only be given to a business that is registered for VAT at the time the relevant supply was received. However, there are instances where a business that is not registered for VAT can incur input tax and, providing certain conditions are satisfied, the business can reclaim the VAT incurred. The general principles are explained below.
If a business incurs VAT before the date of registration in respect of activities that would entitle the business to reclaim VAT, this VAT can be recovered if the following conditions are satisfied:
Input VAT can be recovered on goods purchased before the effective date of registration where the following conditions are met:
The three conditions above apply provided the goods were supplied, imported or acquired not more than four years before the effective date of registration and the goods do not come within the scope of the capital
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