Pre-registration VAT Activities: Sales, Purchases, and Recovery Guidelines for Businesses

• Article discusses activities before a business VAT registers
• Covers VAT registration, sales, and purchases
• Businesses cannot charge or show VAT on invoices before receiving a VAT number
• Input tax recovery for purchases made before registration has time limits
• Input tax can only be reclaimed on the first VAT return
• Opportunity to backdate the Effective Date of Registration (EDR) for additional VAT recovery
• Irrecoverable VAT includes goods completely consumed before registration and exempt supplies
• Special rules for partially exempt businesses and Capital Goods Scheme items

Source: marcusward.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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