Q. I have decided to become VAT registered. Can I claim the VAT back on the van I bought two years ago, which I still use for my business?
A. You can reclaim VAT on goods and services purchased before VAT registration, but there are different time limits for goods as opposed to services. The VAT paid on goods held at the date of VAT registration can be reclaimed if they were purchased within four years before the registration date. VAT on services can only be reclaimed if the services were supplied for the on-going business with 6 months before the VAT registration. The van is classed as goods, so you can reclaim the VAT on purchase.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.
