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Posted Thu, 21 Apr 2022 08:45:00 GMT by Bic Jones
Hi We have recently registered for VAT. We are a charity and also have exempt supply so we will run our VAT under partial exemption scheme. Can we still claim input VAT pre registration like a normal VAT scheme for our first VAT return? Thanks Bic
Posted Thu, 21 Apr 2022 11:26:41 GMT by HMRC Admin 10

There would be an ability to recover input tax prior to registration if you are a partially exempt business.

However the input tax would need to be calculated along the lines of a partial exemption calculation for input tax incurred prior to registration.

The guidance states:

The amount of tax that can be recovered is the amount that would have been deductible had the business been registered at the time the tax was incurred.

You should consider partial exemption and non-business restrictions when you calculate the amount of tax to claim.

Please note that the partial exemption de minimis limit does not apply to VAT incurred pre-registration.

Please see guidance below:

How to treat input tax: pre-registration, pre-incorporation and post-deregistration claims to input tax under regulation 111


Posted Thu, 28 Apr 2022 14:45:46 GMT by Bic Jones
Hi Thank you so much for your reply. We have some invoices paid for services longer than 6 months prior to registration date. However the services we paid is for a whole year which includes the period cover 6 months prior to registration date and from registration date, so basically we paid in advance. Can we still claim the input VAT for that invoice? Thank you
Posted Fri, 29 Apr 2022 07:42:27 GMT by HMRC Admin 19

You can only claim for a part of the invoice which covers the services received up to 6 months prior to your registration date.

You can see the guidance below:

VAT guide (VAT Notice 700)

Thank you.
Posted Wed, 04 May 2022 13:24:06 GMT by Bic Jones
Hi Thank you for your email. Could I ask you how I should calculate the partial exemption please? As our business has reached the threshold for VAT by one new taxable supply we have - the use of our charity name and logo (we never received a payment from any corporate before and this 1st payment immediately takes us over the VAT threshold). So I dont really know how to calculate the partial exemption percentage as there was not a taxable business supply prior to registration. Thank you so much for your help
Posted Tue, 10 May 2022 08:18:35 GMT by HMRC Admin 19

You can find more information at section 4.6 of this VAT notice:

Partial exemption (VAT Notice 706)

Thank you.

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