RCB/1/12 VAT—pre-registration claims concerning VAT charged to a previous registration of the same legal entity at deregistrationRevenue & Customs Brief, Issue 1. 23 January 2012This brief is for information only and explains HMRC policy on claims for VAT on goods on hand at registration that are received from persons who were previously registered for VAT, de-registered and have now re-registered.BackgroundWhen taxable persons register for VAT they often bring assets into the tax system with them. There is a provision (VAT Regulations 1995 reg 111) that allows VAT to be recovered on such assets within set time limits and with normal evidence of purchase, provided the assets were intended for business use when the VAT was incurred. The time limit for goods is four years and evidence is normally in the form of a VAT invoice. Where a taxpayer de-registers due to reduced
Revenue & Customs Brief, Issue 1. 23 January 2012
This brief is for information only and explains HMRC policy on claims for VAT on goods on hand at registration that are received from persons who were previously registered for VAT, de-registered and have now re-registered.
When taxable persons register for VAT they often bring assets into the tax system with them. There is a provision (VAT Regulations 1995 reg 111) that allows VAT to be recovered on such assets within set time limits and with normal evidence of purchase, provided the assets were intended for business use when the VAT was incurred. The time limit for goods is four years and evidence is normally in the form of a VAT invoice.
Where a taxpayer de-registers due to reduced
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