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VAT Voluntary registration to claim vat back on van

VAT Voluntary registration to claim vat back on...


I think i am having a bit a moment here, my mind has gone blank.

I have just received a call from a client advising that he is looking to buy a van for £17,000 including vat, but he is wanting to volunteer to go vat registered so that he can claim the vat back, i advised that he would have to then charge vat on his sales going forward, so he may not save in the long run, to which he replied how long do i have to be vat registered before i can de-register again!

To me it looks like anti avoidance, 

Does anyone have any advise on this.  I would suggest not going vat registered as the who amount can be expenses anyway!!!


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25th Jan 2012 14:11

He will need to account for output VAT on his assets when he deregisters, so there is little to be gained.

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25th Jan 2012 14:39

Until the van's depreciated to £6,000 in value

As pjclar02 says, on deregistration you need to account for output tax on the stock and assets on hand on dergistration, but only if that output VAT is more than £1,000.

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