if you've made more purchases than sales you get a cheque in the post about a week after your VAT return.
In my case such has been with businesses that are mostly / periodically profitable but in a given quarter expenditure may outweigh income (including on occassion no income at all).
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank you Shaun. When there is more VAT to claim than the output VAT I have no question.
But when there is only input VAT and no any sales have been made yet. According to the HMRC website it seems ok to reclaim VAT in any VAT period even if you have not sold anything in that period. But I just never come accross such situation before. Maybe there are some stipulations that are not obvious.
I am meeting on Monday one potential client and I suspect that this is the case for his current situation.
I presume that you registered for VAT as an intended trader. As long as you are in business with a view to selling then you can claim back input VAT paid on purchases relating to that business even if you have not sold anything yet (made a taxable supply). That includes zero rated supplies but not exempt.
There are also provisions for claiming the input VAT on purchases made before you registered for VAT. Contact me if you want further advice. http://thevatlady.co.uk/ This is also a link to my free book download
