Reclaiming VAT After Deregistering for VAT
|What can you reclaim after deregistering for VAT?|
|1. VAT paid on goods (input tax).|
|2. VAT paid on services (input tax).|
|3. VAT relief on customer debts.|
How much time do you have to claim VAT after deregistering?
|Type of Claim||Time Limit|
|The VAT you paid when purchasing goods:||Maximum of 4 years from the date of the return|
|The VAT you paid on services:||Maximum of 4 years from the date the VAT was incurred|
|VAT relief on customer debts:||Maximum of 4 years and 6 months|
Reclaiming VAT paid on purchases:
You can reclaim VAT that was paid on eligible purchases during your VAT registration period, as long as you haven't already claimed it on a previous VAT return. The deadline for making this claim is within 4 years from the VAT return that covered the relevant time period.
Reclaiming VAT paid on services:
You can reclaim VAT paid on services (excluding goods) that were provided after deregistering for VAT, as long as they are related to your taxable activities. For example, solicitor's fees can be included in this claim. The deadline for making this claim is within 4 years from the date the VAT was incurred.
Claiming VAT relief on debts identified after deregistering for VAT:
If you have accounted for VAT on a sale but haven't received any payment from the customer, you can claim relief on the VAT paid to HMRC for that sale. This can be done even after cancelling your VAT registration. The maximum time limit for making this claim is 4 years and 6 months from the date the relief became claimable. However, if the debt is eventually paid, you will need to repay the VAT to HMRC.
How to claim back VAT after cancelling your registration:
Once you have deregistered for VAT and submitted your final VAT return, you can reclaim or claim VAT relief by using a VAT427 form.