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Pre VAT Registration Claim for services

Pre VAT Registration Claim for services

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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.

VIT32000 says:

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



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By Cloudcounter
05th Aug 2019 14:22

My understanding of this is that the service must not have been used up in goods that have been produced. So if your service is painting parts, and those parts have been incorporated in items which have been sold, then the service was used up in the production of those items.

I don't think that monthly phone or other subscriptions would be consumed in that way, unless for software you are billing the service on to your customer

Thanks (1)
Replying to Cloudcounter:
By CWservices6064
05th Aug 2019 14:35

Thanks for a really useful response and the clear example of consumed services.

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