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Pre-registration VAT - Output VAT?

When claiming Input VAT on goods and services used (4yrs & 6mths) do I also have to pay output VAT?


I'm planning to register for VAT when my turnover hits £85k. I keep reading that I can claim VAT on goods and services up to four years prior to registration (6 months for services) but nowhere does it talk about then also having to pay the output VAT on sales in the same period. Is this correct?


I make purchases of £20k in January.
I make £50k worth of sales in Feb.
In March I hit the threshold and register for VAT.
I decide to claim VAT on the £20k of purchaes in January under the pre-registration rules.

Do I then also have to pay the VAT on the £50k sales in Feb?! If you do, then I don't seen the point of the pre-registration rules as you may as well have gone for volentary registration in the first place (if Input VAT was higher) or don't bother with pre-registration claims (if Output VAT was higher)?





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17th Jun 2018 12:16

You start charging VAT on sales from the date of registration. You reclaim VAT on goods and assets held on the date of registration purchased in the previous four years.

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By slikvik
to scalloway
17th Jun 2018 12:39

Thanks scolloway.

So just to be sure, using my example above, I can claim the £4000 VAT on my earlier (Jan) costs - providing I still hold the goods/assets/services - but don't have to submit the £10,000 VAT on the sales in Feb, being prior to the registration date of March?

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to slikvik
17th Jun 2018 12:44

In your example your registration date would be 1 May & it's sales from 1 May that you have to start accounting for VAT on your sales.

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to slikvik
17th Jun 2018 13:59

Re goods in effect a stocktake at date of registration re goods held on said date that will be sold after registration which will attract vat when sold.

So the key point is what sort of level of stock do you carry?

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17th Jun 2018 22:22

You will ‘pay VAT’ on the £20k purchases if/when you subsequently sell them. If they were part of your £50k pre-registration sales, you can not claim the input VAT because you no longer had the goods in the business when you registered.

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