What is Pre-registration VAT?

HMRC allows VAT paid on purchases made before VAT registration to be claimed under certain conditions:

• The purchase was either for goods (Eg stock or equipment) the business still holds on the date of VAT registration up to 4 years prior to registration; or for services purchased in the 6 months prior to registration.

• The company holds a valid VAT record for the purchase (see - https://co-accounting.co.uk/qanda/valid-vat-record).

• The purchase was made for the supplies the business intends to make under its VAT registration (ie the purchases were part of the same trade).

• The purchase was made by the VAT registered business. For a Ltd Company this means nothing can be claimed before its date of incorporation.

For a claim to be made all conditions must be met. The claim can only be made in the first VAT return.

For more detail visit: https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit32000