My business is to become VAT registered from 1 June 2011, but before that, I will be taking delivery of a piece of equipment which will be used by the business for a number of years. Can I reclaim the VAT charged on the cost of the equipment even though the purchase was made before my VAT registration came into force?
Yes, you can. VAT on equipment and goods purchased up to 3 years before you became VAT registered can be reclaimed if you still held that equipment or goods at the date VAT registration became effective. You must also have the original invoice. You can reclaim the VAT paid on your first VAT return, or on any VAT return within the first three years of becoming VAT registered.