18 September 2007 | Uncategorized
When a business registers for VAT it is possible to reclaim all the Input VAT on services for the previous six months and goods for the previous three years.
There is one restriction which is that you cannot recover Input VAT on materials that have since been resold, or have been incorporated into another product.
Therefore it is not possible to reclaim Input VAT on trading stock that you have sold or – for instance – building materials that have been used prior to VAT Registration. The sole exception would be where a sales invoice covering these items is raised after VAT Registration and VAT is to be charged on these items.
The information provided is for general information purposes only.
Legislation and details may have changed since this was written. The text may not include all matters that are relevant to your individual situation.
You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.
31 Lynedoch St.
71 King Street
Main switchboard: +44 (0)141 237 3878
Website by Haiwyre