Question for you accountants!

[m3sye]

At the moment my new business is not VAT registered. I am having to buy some data that I am been charged VAT on, when I pay this invoice will I be able to claim back the VAT when I get my VAT number? (i.e can I backdate it)

Im trying to make sure I dont lose out by 17.65%

THX

[Eric Mc]

Simple answer - yes if you register within 3 years of the purchase and the items purchased remain in use in the business at the time the claim is made.

[m3sye]

Hi Eric,

Thanks for that, can I just check that in my scenario this would be ok.

I am buying data in which has VAT on it, I am then re-selling that on to another business. I understand I cannot charge VAT out without being VAT registered but the VAT I pay would that still be something I claim for when I am VAT reg if like you say I am not using it ?? (as the data will be in my buyers possesion)

Thx

[Eric Mc]

If you have resold the items BEFORE you eventually get around to registering, then you cannot reclaim the VAT on the purchase price of those items. The items must either still be in Stock for Resale (i.e. waiting to be sold) or must be items still in use in the business - such as furniture, plant and machinery, office equipment etc.