VAT Reclaim - how far back can you go?

[commadus]

I thought that you could only reclaim VAT against VATable sales - as I had no sales I can't reclaim VAT - I think that is incorrect?

In either case I am probably looking at around total £2k VAT reclaim. So is there a limit to how far back you can go for a VAT claim?

 

[DontAsk]

Not sure I understand what you are asking, but...

If you are newly VAT registered you can go back 4 years for any stock you paid VAT on and still hold, or 6 months for services. If you made no sales in your current VAT period then you will get a repayment of the full amount.

If this is ongoing VAT registered business then it doesn't matter what the relative levels of sales and purchases are (unless they vary so widely as to trigger an investigation). If you had no sales but paid VAT on purchases then your VAT return will result in a repayment. You go back as far as your last VAT return.

 

[japancool]

Sales? Or purchases?

 

[DefinitelyMaybeUK]

You go back as far as your last VAT return.

Possibly 4 years unless I've misread:

How to correct VAT errors and make adjustments or claims (VAT Notice 700/45)

How to amend your VAT records if you've made errors, correct errors on your VAT Return and claim a refund if you’ve wrongly accounted for VAT.

www.gov.uk

 

[Akshaye]

1) If you are VAT registered, even if you did not make any sales, you can claim input VAT that you paid. When you file your VAT return you will be refunded by HMRC.
2) It sounds you are asking how far back prior to VAT registration can you go to claim input VAT. It is 4 years for stock or assets, and 6 months for services.

 

[commadus]

Sales? Or purchases?

On purchases.

 

[commadus]

Not sure I understand what you are asking, but...

If you are newly VAT registered you can go back 4 years for any stock you paid VAT on and still hold, or 6 months for services. If you made no sales in your current VAT period then you will get a repayment of the full amount.

If this is ongoing VAT registered business then it doesn't matter what the relative levels of sales and purchases are (unless they vary so widely as to trigger an investigation). If you had no sales but paid VAT on purchases then your VAT return will result in a repayment. You go back as far as your last VAT return.

Not newly registered.

 

[DontAsk]

Not newly registered.

Then why are you trying to go back?

Are you trying to correct a mistake?

A bit more detail to your question would get a better answer.

 

[Daybooks]

You are correct in as much as you can only recover VAT on inputs (purchases) used directly for taxable supplies (Standard, zero or reduced rate) but cannot recover VAT on inputs used directly for expempt supplies and can recover inputs on overheads subject to any partial exemption restriction. However not making taxable supplies in a periood does not preclude you from recovering allowable inputs, providing of course there is a genuine trade.

If you have failed to claim input VAT then you can correct these in accordance with the following guidelines:

Sending a VAT Return

How to do a VAT Return, pay your VAT bill, correct errors in your VAT Return, what to do if you're late with your return or payment.

www.gov.uk

 

[commadus]

Then why are you trying to go back?

Are you trying to correct a mistake?

A bit more detail to your question would get a better answer.

Yes I suppose you can class it as a mistake - I didn't reclaim input VAT because I thought I could only reclaim input VAT if I had output VAT (Sales) and then net it off.

 

[Paul Kelly ICHYB]

@commadus What did your accountant advise when you registered for VAT or when you asked him this question?

 

[AndreasC]

Before you go registering to relcaim the VAT back on your costs just bear in mind that you will have to charge VAT on any sales you then make. If your customers are VAT registered or due to what you sell you don't charge VAT (0% or outside UK) then there is no additional cost to them so it's worth registering. If you will have to charge VAT then you will get a repayment now but will end up having to increase your prices or pay VAT yourself from the sales which commercially is not good.

Do check with your accountant

 

[Paul Kelly ICHYB]

will end up having to increase your prices

But not (necessarily) by 20%!

 

[Newchodge]

Before you go registering to relcaim the VAT back on your costs just bear in mind that you will have to charge VAT on any sales you then make. If your customers are VAT registered or due to what you sell you don't charge VAT (0% or outside UK) then there is no additional cost to them so it's worth registering. If you will have to charge VAT then you will get a repayment now but will end up having to increase your prices or pay VAT yourself from the sales which commercially is not good.

Do check with your accountant

The OP is already registered.

 

[DEBS Ltd]

On purchases.

What would rent qualify as?

Our landlord is going to be adding VAT to our rent. How long do we have to claim that back?

 

[Scalloway]

If the landlord is only now going to start charging VAT on the rent then you can reclaim it from day 1.