The company I work for has just registered for VAT and as a result is looking to claim back some of the VAT on set-up costs prior to registration, such as ovens (it's a caterer) and other equipment.
So many of the smaller purchases have receipts but not VAT receipts. Is there nothing I can do, apart from go back to the original suppliers (some purchases are more than 6 months old), or do I just exclude them from the VAT return?
Can you confirm whether the business has just set up or whether they have now become VAT reg because they are over the threshold? The answer could depend on that.
If you just have receipts, it may well be that the supplier is not VAT registered themselves.
You are able to claim for such things as equipment, catering or IT for example, so long as you still hold and use them for the business, have the VAT receipt from when you purchased them. The invoice must be in the name of the business.
You then need to produce a list to support your claim and add the figure to box 4 of the 1st VAT return. Keep the list in a safe place.
P My client also recently went over the threshold and has registred for VAT. Vat start from 1st July this year could he claim back suppliers invoices before that date.
He has a restaurant business. He took it over in March. Registered in July.
If he claimed back expenses on his suppliers invoices surely the vat man would like to have some of his income as well?
information as per HMRC website: Reclaiming VAT on goods you bought before registration You can reclaim VAT on goods you bought or imported no more than four years before you were registered for VAT if all the following are true:
the goods were bought by you as the entity that is now registered for VAT (for example, the individual, business or organisation) the goods are for your VAT taxable business purposes, which means they must relate to VAT taxable goods or services that you supply the goods are still held by you or they have been used to make other goods you still hold You can't reclaim VAT on any of these goods:
goods that you've completely used up before you registered for VAT (such as petrol, electricity or gas) goods that you have already sold or supplied before being registered, or have used to make goods you have sold or supplied before being registered goods that relate to supplies you make that are exempt from VAT
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
