Commentary

V7.135 Input tax on goods and services obtained before VAT registration

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.135 Input tax on goods and services obtained before VAT registration

Part V7 Tax planning | Commentary

V7.135 Input tax on goods and services obtained before VAT registration

When a business first registers for VAT, it is possible that it may have incurred input VAT on expenditure before its date of registration. The positive point is that there is some scope to reclaim this VAT on the first return submitted by the business. The rules for making such a claim depend on whether the expenditure in question is related to the purchase of goods or of services.

  1.  

    •     Goods – the following conditions must be satisfied:

  2.  
    1.  

      –     the goods are still held at the time when the business became VAT registered

    2.  

      –     they must have been supplied to the registered business within the four-year period before the date of

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