Pre Registration - Goods & Services

I have a client who is wishing to reclaim pre-registration input VAT on a Structure that was built for their business. Wooden Shelter for Air Pistol Shooting Range for customers to stand in whilst shooting. Can they claim the VAT on the whole invoice or is it on the materials only ? Does the construction by the builder class as a service ? (structure was built 3 years ago)

Construction is a service, not a supply of goods, therefore you are limited to the 6 month rule. Even if you built a new Amazon style warehouse costing £1m, the whole structure is a service, not "goods" and the 6 month rule still applies. They cannot reclaim the VAT on the materials element either as those materials have been incorporated into the structure and the therefore are the goods "on hand or in stock at time of registration?" and the answer is no, they are not on hand or in stock, they have been used to build a structure.

I had a feeling this may be the case, thank you for clarifying. I think the client was hoping it would help to bring their vat bill down !

Hi,

Businesses are allowed to recover VAT incurred prior to registration where the conditions are met below:

Input tax when VAT paid on goods and services received before VAT registration

The structure would be deemed a service and so the recovery of the VAT would follow the guidlines and time limits for services.

Thank you.