I have a client looking to maxmimise pre VAT registration input tax. Whilst I am clear on the position regarding goods and fixed assets I am less sure about services.
in the case of services the supply was made not more than six months before the date of registration. Six months represents a period in which it is deemed that services obtained will relate to business activity carried on at the time of registration.
The following article adds 'the service must not have been consumed before the date of registration'.
So would a monthly phone, software or any other subscription service be deemed as 'consumed' at the point of registration so no VAT can be reclaimed?
Thanks in advance