VAT Reclaims For Goods Bought Before VAT Registration

Hello, I am the owner of UK LTD, a company that sells on Amazon.co.uk and is not established in the UK as NETP. Amazon has requested that we pay the unpaid VAT from past sales. We will also immediately register for VAT. In this situation, after paying all unpaid VAT to Amazon and registering the company for VAT, can we reclaim the VAT paid on goods sold before the company's VAT registration? So, since we have to pay VAT retroactively, can we exceptionally reclaim the VAT paid on the purchase of goods for which we have paid VAT on the sale? This situation is very important for the future of our company because it results in a significant debt on the Amazon side. Is such a thing possible as a one-time exception? Thank you in advance for your help and advice. Kind Regards.

Hi,

A VAT registered business is able to recover VAT on purchases made prior to registering for VAT but only in the case where the goods are on hand at the date of VAT registration and there are no exceptions to this. You can see the guidance here:

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

Thank you.