Pre VAT Registration Goods

[CG]

Hi

Please can you tell me how to treat an invoice for paints bought by an artist who has just registered for VAT. The goods were purchased 6 months before the date of registration and some of the paints will have been part used. Does the invoice need to be apportioned according to how much of each tub of paint is physically remaining on the date of registration?

Many thanks

[Trevor S]

Hi, apportionment is not required, provided that the paint was only put to business use - see example in HMRC's VIT32000 manual https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit32000

Businesses are not required to reduce the VAT considered in respect of pre-registration use of goods, unless those goods have previously been used in the making of exempt supplies or for non-business purposes. For example, VAT incurred on a van purchased by an ice cream seller three years before registration and used before and after registration only for selling ice cream would be recoverable in full, even though it was used for 3 years when no tax was due on sales.