Can You Reclaim After VAT Deregistration?
The answer can be exciting for you. Yes! You can still reclaim VAT after VAT deregistration.
- What Benefits Can I Reclaim After Deregistering For VAT?
- Reclaim the VAT you paid (input tax on purchases of goods)
- What is the deadline for Reclaiming after VAT Deregistration?
- VAT Reclaiming Rules: Purchases, Services, and Unpaid Debt Reliefs
- Reclaim VAT You Pay on Buying Goods
- Reclaim the VAT paid on services
- VAT Reliefs for Debt Discovered After VAT Deregistration
- Do I need a form to claim back VAT after cancelling my registration?
What Benefits Can I Reclaim After Deregistering For VAT?
Even if you have cancelled your VAT registration, you can still reclaim relief for expenses incurred while actively registered. Here’s what you can reclaim.
Reclaim the VAT you paid (input tax on purchases of goods)
Reclaim input tax on services or goods you receive.
You can claim relief on your VAT bills, including sales, when the customer didn’t pay you.
| Reclaim the VAT you paid (input tax on purchases of goods) |
| Reclaim input tax on services or goods you receive. |
| You can claim relief on your VAT bills, including sales, when the customer didn’t pay you. |
What is the deadline for Reclaiming after VAT Deregistration?
The deadline for claiming VAT depends on your situation.
- If you want to reclaim VAT for goods or services.
- Another situation could be that you want to recover it because you were charged on a sale, but the customer hasn’t paid you back.
| VAT You Claim | Deadline |
|---|---|
| You can claim VAT on goods when buying them | You can claim relief for VAT on all goods you get within four years from the date of the VAT return. |
| VAT Relief on customer debt | You can claim VAT if the customer hasn’t paid you within four years and six months from the date the VAT is due. |
| VAT you paid on services | You can claim VAT paid on services for a maximum of four years from the date VAT was incurred. |
VAT Reclaiming Rules: Purchases, Services, and Unpaid Debt Reliefs
Here are the rules that explain how you can claim VAT after deregistration.
Reclaim VAT You Pay on Buying Goods
You are eligible to claim the VAT you paid on eligible purchases when you were registered. This is applicable even if you have not previously claimed it on a VAT return. The claim can be made for up to four years following the VAT return. This also covers the period when purchases were made.
Reclaim the VAT paid on services.
You can reclaim VAT paid on services (not including goods) supplied after cancelling VAT registration as long as they are connected with your business taxable activities.
Example
The solicitor fee is best suited to this example. You can claim it four years from the date VAT was incurred.
VAT Reliefs for Debt Discovered After VAT Deregistration
There can be a time when you account for VAT on any sale but haven’t received the payment from the customer. If your customer hasn’t paid you for a more extended period, you can claim relief on the VAT you paid to HMRC from the sale. Sometimes, you can also do this even after cancelling your VAT registration.
You can also claim VAT relief on a sale for which you have not received the payment and identify it as bad debt. The deadline for this reclaim can be four years and six months from the date the relief became reclaimable. However, if the customer pays you back later, you must pay back VAT to HMRC.
Do I need a form to claim back VAT after cancelling my registration?
You must apply through a VAT427 form to reclaim after VAT deregistration.