Reclaiming input VAT when first register

[sarahg]

If a course was undertaken 6 months prior to VAT registration - but was solely for the purpose of the business, can the VAT be reclaimed on registration?

What about assets?

Does it make a difference if the director paid for them?

[vatexpert]

So long as the business is fully taxable and able to recover its input tax, the VAT incurred on the course should be reclaimable in full. Of course it must fall within the six months pre-registration time limit applicable to services.

For goods, the time limit is three years. So VAT can be reclaimed on goods on hand at the time of registration that were acquired within the previous three years, provided you have tax invoices to substantiate the claim.

Joe Wilkins
www.vatexpert.com

[vatexpert]

ps It does not matter that the director paid for the goods or services so long as the supply was to the company.

Joe Wilkins