Can anyone advise on VAT before registration for refurbishment costs. Items like paint, plaster that is really still on the premises can the VAT be reclaimed or is this classed as being used up? As I am aware that you can only reclaim for goods you still hold at registration date.
I would argue that refurbishment costs, provided you are still in the same building as was refurbished at vat registration date, are recoverable.
Question is do they fall within goods (can reclaim up to 4 years before registration) or services (can reclaim up to 6 months before registration).
I would come down on the side that they are goods, unless you took on an electrician/plumber etc where they costs would be seen as services.
I would argue that they havent been used used up unless the refurbishment is back to the state what it was before the refurbishment was carried out when it could be argued that the costs of refurbishment has been expended.
There may be other better qualified than myself to comment.
Personally i would claim them then leave it up to the HMRC to argue they shouldnt be if they raise the question.
