Hi,
One of my clients just registered for VAT, they have some invoices for services dated more than 6 months prior to registration, but supplied within 6 months (such as rent or yearly subscription). Can they claim these or not?
Also, statement that the services must be in relation to taxable supply - can domain hosting, advertising and alike be claimed or is it just things directly connected such as storage rent?
Many thanks!
Replies (3)
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1. Input tax must relate to taxable supplies.
2. Six month rule is based on ‘time of supply,’ which may be different from invoice date.
Correct. Therefore rent is often excluded from pre-registration VAT recovery, like most service expenses.
It is designed for services that have been used to construct goods that are sold after VAT registration for example.