Question

Can I reclaim VAT on costs from before I registered?

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Hi everyone — I registered my online retail business for VAT last month, and I'm now going through my old receipts. Before I registered, I bought a laptop and a load of stock, so I paid VAT on those at the time. Can I reclaim that VAT now that I'm registered? I've heard there's a time limit (four years for goods, six months for services?) but I'm not sure if that applies to things bought before registration. Also, do I need to do anything special on my first VAT return to claim it? Thanks!

1 Answer

Good news — your understanding is exactly right. You can reclaim VAT on goods bought up to 4 years before registration, as long as you still have them (so your laptop and any unsold stock qualify), and on services bought up to 6 months before registration. The purchases must relate to your business's taxable supplies, which they do here. You don't need to do anything special on your first return — just include the VAT in the reclaimable input VAT box as normal, but do keep the original invoices as evidence. One thing to watch: if any of those goods have since been sold or consumed, you can't reclaim the VAT on them.

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