ÑÇÖÞÉ«ÇéÍø

The conditions for treating pre-registration VAT as input tax

Regulations¹ made under VATA 1994, s 24(6)(b) provide that HMRC may allow a taxable person to treat as input tax VAT incurred on certain goods and services obtained before the effective date of registration.

Subject to conditions, a taxable person can treat as input tax VAT incurred on goods or services before the effective date of VAT registration. The VAT must have been incurred for the purpose of a business the person carried on, or intended to carry on, at the time it was incurred, and the following conditions must be met.

In the case of services, the VAT must have been incurred no more than six months before the effective date of VAT registration of the claimant.

In the case of goods:

1. Ìý

   •ÌýÌýÌýÌý the VAT must have been incurred no more than four years before the effective date of VAT registration of the claimant

2. Ìý

   •ÌýÌýÌýÌý the goods