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2nd Time VAT Registration

Hi Everybody

If a company has been deregistered from VAT by HMRC due to low sales activity but after few months company again applies for VAT because its sales are increasing. After successful 2nd registration, can the company be able to claim vat on its expenses incurred 6 months before the date of registration. When registered first time  vat scheme was Flat rate but 2nd time its accrual accounting.

Thanks in Advance

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Register for VAT again

In principle , you can claim VAT incurred before registration, see Notice 700, chapter 11. However, if invoices were dated while you were previously registered, I suggest that you cannot claim that VAT. (Having said that I think the legislation does not cover the particular scenario you have described!)

 

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But...

leshoward wrote:

In principle , you can claim VAT incurred before registration, see Notice 700, chapter 11. However, if invoices were dated while you were previously registered, I suggest that you cannot claim that VAT. (Having said that I think the legislation does not cover the particular scenario you have described!)

 

 

If they incur expenses (on services) in Jan 2012, register in March, get deregistered in June and re-register in October, all without making a claim for pre-registration expenses, can they still get the January VAT back (is I think the question)?

Is there no mechanism for reclaiming pre registration VAT after a deregistration?

#Edit#

Or perhaps that isn't the question, though I'm still curious. 

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Register for VAT again

I think that the legislation is unclear. The difficulty is that pre-reg input tax has to be claimed on the first VAT Return, and I assume that the taxpayer has already submitted a Return when first registered.

However, Regulation 111 states that 'the Commissioners may authorise' a repayment of VAT incurred in these circumstances. Perhaps he should put in a VAT 652, with a covering letter, arguing the issue of fairness.

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