Can I claim VAT on purchases made before registration?

When completing your first VAT return you can make a claim for goods and services purchased prior to VAT registration.

You can generally claim VAT on goods you purchased up to 4 years before registration and 6 months for services purchased.  There are a few conditions in order for you to claim back the VAT however.

• the goods were bought by the same business/entity that is now registered e.g. you cannot claim back VAT for goods purchased by another business.
• the goods and services are business related.
• the goods (e.g. assets and stock) are still held by you.

 

You cannot claim if the goods and services fall within these categories however:

• goods that have been completed used up e.g. petrol, gas, electricity etc.
• goods that have already been sold or supplied before registering for VAT.
• goods relating to supplies that are exempt from VAT.