Input tax is claimed by registered businesses on their qualifying supplies, subject to certain conditions. This document discusses these in detail, together with VAT on pre-registration, post-registration and post-deregistration; procedure for recovering input tax; group registrations; transfer of a business as a going concern (TOGC), late claims; early claims; and estimated claims for input tax.
Points discussed within this guidance note:
> The basic rule
The basic rule for reclaiming input tax vat is laid down in the Value Added Tax (General) Regulations 1995, SI 1995/2518, reg 29(1) which includes a time limit for claiming input VAT.
> Supplies must be made to the business claiming input tax
To make an input tax claim there are various conditions which must apply and which are detailed in this note.
> VAT must be levied at the relevant rate
> Exceptions to the basic rule
>> Pre-registration VAT
>> Pre-registration input tax and partial exemption
>> Pre-registration and property expenditure
>> Pre-registration – capital items
>> Pre-registration claims for businesses that were previously registered
> Procedure for recovering input tax
> Group registrations
> Transfer of a business as a going concern (TOGC)
> Late claims
> Early claims
> Estimated claims for input tax
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