98% of my client's business sales are zero rated however they have just gone over the VAT threshhold and need to register for VAT.
They are about to but a van for 15,000 plus VAT of 3,000; if they buy the van after registering for VAT I believe they can reclaim the VAT .. is that correct?
Indeed I think they could reclaim the VAT (or most of it) even if they had bought the van within a certain period before registration?
Replies (4)
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If your sales are zero rated (eg childrens clothes etc), you claim all the VAT in full as normal - your goods are 'vatable', just at an amount of nil.
Presumably none of your sales are exempt (insurance, medical work) etc.
If the sales are mainly zero rated, your client would have been better registering for VAT voluntarily some time ago!
If the sales are mainly zero rated, your client would have been better registering for VAT voluntarily some time ago!
Sounds like the client needs 'an accountant'.