VAT on unused stock

VAT on unused stock

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A VAT registered partnership bought lots of stock but they are deregistered as of the next VAT quarter.  VAT has been reclaimed on all purchases but the remaining stock will be sold without the VAT.  Does some kind of adjustment need to be made?

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paddle steamer
By DJKL
07th Jul 2015 01:24

Yes, possibly

Yes, vat on stock and equipment/ plant etc may need accounted for on final return.

https://www.gov.uk/vat-registration/cancel-registration

You’ll have to submit a final VAT Return for the period up to and including the de-registration date. You must account for any stock and other assets you have on this date if:

you could reclaim VAT when you bought themthe total VAT due on these assets is over £1,000

Don’t wait until you’ve received all your invoices before submitting your final return. You’ll still be able to reclaim VAT on anything you bought for your business while still registered once you get the invoices.

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By TomACCA
07th Jul 2015 13:32

Thanks - that's great

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