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Sir Mike kindly help me with the little question that beats my understanding. I just can’t get why the answer is B and not C
Yui commenced trading on 1 April 2014, and registered for value added tax (VAT) from 1 January 2015. Her first VAT return is for the quarter ended 31 March 2015. During the period 1 April 2014 to 31 March 2015, Yui incurred input VAT of £110 per month in respect of the hire of office equipment.
How much input VAT in respect of the office equipment can Yui reclaim on her VAT return for the quarter ended 31 March 2015?
A £660
B £990
C £330
D £1,320See OT course notes on pre registration input VAT (page 151 section 1.4). Pre registration input VAT may be recovered in the first VAT return submitted for services supplied within the 6 months prior to registration.
Hence in the first VAT return from 1 January to 31 March 2015 Yui may recover both the 3 months of VAT incurred within the VAT return period itself (330) plus the recoverable pre registration input VAT for 6 months prior to registration (660).ps By the way – I’m not Mike – let alone Sir Mike – but I will pass on your accolade to him! Cheers!
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