Is it correct that when a company is not vat reg , but in time may be !! they are able to go back 3 years after registration and claim the vat back?? and if so how do you enter the purchase invoices on sage ?? I am not sure if i have explaned that very well !!
A business can claim back VAT on goods purchased up to four years before VAT registration but certain conditions need to be met. Essentially, the business still has to hold the goods (either as stock or fixed assets) or the goods were used to make other goods that the business still holds. You can't go back and reclaim VAT on goods that have already been consumed or sold onto customers. There's a similar rule for services, although this is restricted to six months before VAT registration.
