Could someone confirm for me that the ability to reclaim VAT on stock and assets on hand at date of VAT registration (under flat rate), also applies to services in the previous six months?
I can't find a definitive answer, if you can point me in the right direction, it would be appreciated.
thanks in advance
Replies (3)
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Yes you can and also the VAT on other goods in the past 4 years if they qualify as normal. There is I think a reference in the FRS notice.
It's something a lot of people don't know or forget about.
If you sell the assets later, you need to charge and declare the full VAT though.
Hope this helps.