New clients voluntarily registered for VAT on advice from accountant and I'm beginning to prepare the accounts so they are able to reclaim VAT on previous purchases. They have bought some stationery and paid for a website from the same company and have both invoices and receipts for payment, the invoices do not have any VAT analysis or VAT registration number on them but the receipts do show an *for taxable supplies and state the gross amount and the VAT amount. I don't have any retail customers but am guessing this may just be how the till is set up - although seems incorrect to me if not VAT registered.
I don't want to miss claiming for anything but think better to be cautious and not include these invoices, would you agree?
Also have an invoice for servicing of business vehicle - a lorry - but it's dated 2nd November and registration date is 6th May so again assume this can't be claimed as just outside the 6 months for services?
Where simplified or modified VAT invoices can be issued
Simplified VAT invoices
If you make retail sales and you make a sale of goods or services for £250 or less including VAT, then when a customer asks for a VAT invoice, you can issue a simplified VAT invoice that only needs to show:
the seller's name and address
the seller's VAT registration number
the time of supply (tax point)
a description of the goods or services
for each VAT rate applicable, the total amount payable, including VAT and the VAT rate charged
Exempt supplies must not be included in this type of VAT invoice.
Basically they dont have to show the Vat element under £250 but they must show the Vat number to reclaim any Vat
On the lorry servicing:
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
The word 'goods' includes goods that are intended for resale, and also goods that you keep as assets, such as computer systems, shop fittings, office equipment and furniture, tills, vans and other equipment. It also covers anything else you've bought that isn't a service, so it includes consumables such as stationery.
I should have been a bit more specific as the receipts are for £250 & £439.95 with no VAT numbers on them, and no VAT number or VAT amounts on the invoices for same amounts even though the VAT is separated out on the receipts.
The lorry is for use in the business (a partnership) but as the invoice is for servicing and annual test I think it's outside the 6 months as services not goods.
Many thanks Sharon, think it's better to be cautious. The reclaim on services info is here -
You can reclaim VAT on services you bought during the six months before you registered for VAT if both the following are true:
the services were bought by you as the entity (for example, the individual, business or organisation) that is now registered for VAT
the services are for your VAT taxable business purposes, which means they must relate to VAT taxable goods or services that you supply
You cannot reclaim VAT on any of these services:
services that relate to goods you disposed of before you were registered for VAT - for example, repairs to a machine you sold before you were registered
services that relate to goods or services you supply that are exempt from VAT
Examples of services you might have paid for when starting your business are legal and accountancy fees, services relating to setting up your computer and other equipment, and fees and services relating to your premises. You can reclaim the VAT on these and other services assuming all the conditions listed here are met
