Pre-registration inputs

[sdj1704]

I am operating a limousine, does the petrol fall under the "Services" heading? ie can I reclaim the VAT on all petrol paid for in the past six months only or the three year limit? come to think of it what about the services I have had done to the limo in the past year such as a new gearbox and general servicing?

I assume any VAT on the limo (asset) can be reclaimed back as far as three years, for example any VAT on import duty, new tv screens dvd player etc.

Thanks

[paultaylor@vatease.c]

Petrol will be classed as goods. However, you can only reclaim the VAT on goods bought before registration if those goods are "on hand" at the date of registration. I think it unlikely that you would still have the vast majority of the petrol you have bought and you will not therefore be able to reclaim the VAT.

Servicing costs are likely to be a mixture of services and goods. The VAT can be claimed subject to the normal rules.

There are special rules regarding the reclaim of VAT incurred on the purchase of a car that can be quite complex. I recommend that you read the Customs public notice or seek further guidance from a specialist.

VATease would be happy to assist.

Regards

Paul Taylor
0121 778 4299
http://www.vatease.co.uk/