Query on my VAT start date and VAT filing date

Good morning, I am registering my company for VAT, which is a voluntary VAT registration, and not certain about the "VAT start date" in my specific case. There are two options a) from the company establishment date b) select a specific date. My company is registered in May 2021. Can I please query below: 1. If I select option a, can / shall I file VAT return that dates back to May 2021? What does it mean to me if I select a date in the past? 2. I plan to entere the "VAT annual accounting scheme". When is the earlist date that I should file my first VAT return? Is it as soon as the registration is completed this year, or by end of July 2025 (deadline of next accounting year)? Regards, Bei

If you register for VAT from May 2021, then you will owe output tax (VAT) on any sales you made from that date, as you are stating this is a voluntary registration (meaning you are below the VAT registration threshold but want to register anyway), if you register from May 2021 then you potentially owe a lot of money to HMRC for all sales since May 2021. Annual Accounting is not as simple as first seems, you will need to estimate the value of your sales and purchases and calculate the net VAT liability you owe to HMRC over a 12 month period and you then set up a direct debit to pay HMRC each month a set amount, regardless of what your actual sales/purchases are, you file a single annual return and make any balancing payment or if you are due a refund you would file the annual return and receive the refund at the time the annual return is filed. See this link, section 3.2 to read about how your annual return date is calculated. https://www.gov.uk/guidance/vat-annual-accounting-notice-732#how-the-scheme-works

Thanks for the reply. However, it doesn't answer my questions. The link doesn't have answer to my questions either. Can you please clarify specifically the following. 1. Can I date back to 1st of May 20021 as the VAT start date? 2. If so, and joing the Annual Accouting scheme, what will be my first VAT filing period? When shall I start filing the first VAT return? Thanks.

 

Hi. If you register for VAT voluntarily then you can choose the date of your VAT registration. This could be a current date or it could be a date in the past. If you choose a date in the past then you will be required to account for VAT from that date and you will be able to recover VAT as input tax from that date and prior to the date of registration  . Please see the links below: VAT guide (VAT Notice 700)   . 1. Input tax when VAT paid on goods and services received before VAT registration y. Your first return will begin from the date of your registration. You can look at joing the Annual Accounting Scheme also.The Annual Accounting Sceheme will then be in touch to advise you of the period of the first return  . Thank you .

Thank you for the reply. That has exactly clarified my questions and confusions. And appreciate the tips from your first reply. I am aware of the highlightes notes. My company is mainly dealing with business to business, therefore, not subject to VAT. No VAT has been collected from the customers. In this case, I believe the company will benefit from VAT registration, then claiming VAT back from business expenses. Thanks.