Pre-registration input VAT

Pre-registration input VAT

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Hi there, 

Forgive my ignorance if this is a fairly simple question. I`m acting for a newly established UK food wholesaler. They are not VAT registered yet. They are acquiring food products from other EU countries. Since they are not VAT registered, they will need to pay the VAT at the VAT rates of the respective countries. How can they recover this pre-registration VAT?

  • Does regulation 111 apply to VAT paid to a EU company at the VAT rate of that country? Can they add the VAT already paid before registration as input VAT on the VAT return?
  • Can we backdate the VAT registration and ask the EU supplier to reissue the invoices with zero rate?

I have re-read the VAT notices and VR7210, VIT32000, called the VAT team and still cannot get it right. 

http://www.hmrc.gov.uk/manuals/vrmanual/VR7210.htm

http://www.hmrc.gov.uk/manuals/vitmanual/VIT32000.htm

Thank you very much for your time.

Replies (2)

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chips_at_mattersey
By Les Howard
27th Oct 2015 14:14

Pre-registration input tax

I would try to have the date of registration back-dated, and ask the EU supplier to re-invoice.

That would also avoid the current HMRC restriction on input tax, arguing for a reduction for pre-registration use of the assets.

 

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By LuKosro
28th Oct 2015 13:48

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Many thanks for your reply, leshoward.

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