Claiming VAT for a backdated IT Hardware Expense. Possible?

S

smallbiz

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Hello Folks, I have a startup (ltd company -B2B business) and now considering to do VAT registration. If I purchase a laptop/phone now, and register for VAT 1 month later, can I still claim the VAT expense for the backdated purchase of laptop/phone?

Reason of asking this: I am not willing to take VAT filing responsibility till I have my first customer (Assumption - It will add ~100-200 Euros per month of accounting cost).
 
My understanding is that you will need to be vat registered from the date that is either before or on the date of the purchase invoice. It isn't that much trouble to file vat returns with a small reclaim or even a nil. You might even find youtube videos on how to do it (but not sure on this one).
 
hmm understood. I am not sure on the admin hassle to register and to file VAT returns, hence was skeptical. My current VAT on the IT equipment is ~800 Euros, thus this dilemma. I am considering registering for VAT right away and make the purchase on the same day itself. Any other thoughts from anyone else will be helpfu.
 
It's impossible to answer your question without further detail. This is the sort of question you should be asking an accountant, and if the accountant you have in mind will cost up to €200 a month before you even start trading, you probably need a different one.
 
Hi @T McGibney - Understandable. Reg accountant fees - I have that ballpark no from some googling where I find these standard account price packages. Do you have any idea on what would be good cost for accountant for a early startup with early 5 digits revenue at max?
 
As an accountant myself I'm probably the worst person to ask.

But if I were you I'd be looking for recommendations from family, trusted friends or colleagues.
 
No, you cannot reclaim vat on purchases if you are not vat registered and charging vat on your sales

Vat reclaims are done by reducing your vat bill by deducting expenses/purchase vat from sales vat and paying the balance to revenue

You need to be vat register to process a vat reclaim on ROS
 
As a B2B business, your customers will only be able to reclaim the VAT on their purchases from you, ie your sales to them, if you are VAT registered

It they are VAT registered then this could pose pricing problems for you as you may be competing with other suppliers who are VAT registered
 
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