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-incorporation

>> Post-deregistration

>> 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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