VAT reclaim on renovation costs for a holiday home - VAT registration date?

Jenny1311 Registered Posts: 1
Can I choose a future VAT registration start date e.g. July 2018, if I want to reclaim VAT paid on renovation costs of a holiday home 2 years ago? July 18 would give my client time to address their sales pricing (to charge VAT). Bookings started 1 year ago after renovation, and my client would like to voluntarily register to reclaim the VAT back. I understand that if I back date the registration date to the first booking, I can claim back the VAT (purchases fall within the 4 year rule) and I would have to adjust sales figures to account for the VAT not charged originally, as VAT must be charged on the registration date set. However, if I were to use the VAT registration start date as July 18, is the VAT reclaim still possible with no VAT being charged on previous sales? I obviously would not be able to account for VAT on sales 1 year ago with a VAT registration date of July 18. Any help would be much appreciated. Thank you.


  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
    If you register for VAT in July 2018 you start charging output VAT from 1st July and your first VAT return can include pre-registration VAT up to 4 years prior to that date for assets still held in the business or 6 months for services.

    However I would first ascertain that the holiday home qualifies as a holiday let (or B&B) otherwise the supply of residential accommodation is exempt from VAT (and no input tax may be reclaimed).
    Most renovation costs would also probably be services so anything older than 6 months would not be claimable.
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