Pre-registration input VAT (UK)
A newly registered business may recover eligible VAT incurred before registration on goods and services used for its taxable business, subject to evidence, timing and other recovery conditions. Goods generally must have been supplied within four years before registration and still be on hand, or incorporated into goods still on hand, at registration; services generally must have been supplied no more than six months before registration. HMRC normally expects the claim on the first VAT return.
Worked example
A business registers for VAT on 1 July 2025. It bought equipment for its wholly taxable business on 1 July 2023, still holds it at registration and paid £400 VAT. Assuming all other conditions and evidence requirements are met, the £400 is potentially recoverable on its first return.
Common mistake
Assuming all old purchases qualify regardless of timing, use or whether goods remain on hand, or applying the four-year goods period to services.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |