Input tax ― pre-registration, pre-incorporation and post-registration

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the special rules for recovering input tax:

•
incurred prior to VAT registration
•
incurred prior to incorporation
•
after a VAT registration has been cancelled

For an overview of input tax more broadly, see the Input tax ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V3.431–V3.432.

Recovery of VAT incurred prior to registration

Normally, the right to recover input tax is contingent on a business being registered for VAT at the time at which a supply is received (ie the business must be a ‘taxable person’). However, special pre-registration input tax rules mean that (subject to certain conditions being met) a business can recover VAT incurred prior to its effective date of registration.

Different conditions apply to goods and services and special record-keeping requirements apply.

VAT incurred on goods purchased prior to registration

VAT can be recovered on goods supplied for business purposes before the effective date of registration provided:

•
the

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Input tax ― pre-registration, pre-incorporation and post-registration

Input tax ― pre-registration, pre-incorporation and post-registration