Vat ?

jewls

We have just bought a new van if we register for vat in a few months can we reclaim it back

Many thanks

Regshoe

Having made a number of assumptions - yes.

The following page should give you the information you need and is not overly technical.

http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm

Buzby

(1) only if VAT was actually charged on the bill of sale, not if it is shown as an inclusive amount. (2) not all vans are sold with VAT charged, only if the original seller had already reclaimed it at purchase (and has to charge it on onward sale).

chrismac1

In practice, if there is a check then the invoice document is crucial. Firstly it must be in the same name as the business registered for VAT - so a personal invoice to Fred Bloggs does not make the cut if the business is Fred Bloggs Limited.

It may seem obvious, but it must be an invoice, I ideally like to see the word INVOICE very clearly displayed on the document. This is important becuase on lease deals and related car sales the buyer cannot claim all of the VAT, but on a straight purchase or hire purchase the buyer can claim it.

So the invoice is fine, they'll just pay up the refund, right? Well possibly. If there is any doubt about whether the business will be making taxable supplies and handing over some output tax, the input tax claim is at risk. Personally I like to see clients making taxable supplies in the same VAT quarter as the input tax claim, if not I like to get a firm commitment as to what sort of taxable supplies they'll be making and when by.

Bantex_2

jewls wrote: »

We have just bought a new van if we register for vat in a few months can we reclaim it back

Many thanks

Possibly, but you will then need to start charging your customers VAT.

Dentowl

You don't mention whether you are in business or not, as you need to be in business making taxable supplies in order to register for VAT. If you are in business and using the van (commercial vehicle?) for your business, you could potentially recover VAT back. It is much harder to recover VAT on non-commercial vehicles.