VAT backdated registration - help!

My client provides zero-rated food items and is considering applying for voluntary registration of VAT. On the HMRC website it mentions that there’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is 4 years for goods you still have, or that were used to make other goods you still have. If my client purchased an asset and is still using this to produce the food items would that be classed as goods still held and as such be able to reclaim the VAT?

Thanks in advance.

Comments

  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Yes in general VAT on capital assets can be claimed for up to 4 years before registration (6 months on services).
  • rwb
    rwb Registered Posts: 32 Regular contributor ⭐ ? ⭐
    I may be wrong but I thought you could reclaim VAT on any goods purchased in the 4 year period prior to registration and still held within the business - not limited to capital assets only - that is off the top of my head though so happy to be proven wrong!
    MarieNoelle
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Yes this is my understanding too. Most capital assets would fit the definition, and this was the specific OP's question hence my answer :)
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