Smarter accounting

Pre-registration input VAT

12 May 2015, Advocates, Artists, Barristers, Companies, Musicians, Sole Traders

Input VAT is the VAT you pay on purchases of good and services.  Once a business is registered for VAT, this input VAT can be reclaimed as long as it relates to taxable supplies.  Under specific circumstances pre-registration input VAT can be reclaimed.

Reclaim pre-registration input VAT


In most cases the rules on reclaiming pre-registration input VAT on goods are as follows:

  • purchases were made within 4 years of registration
  • purchases were made by same person / business
  • goods are still on hand
  • stock records exists to evidence the above


The conditions for reclaiming pre-registration input VAT on services is more restrictive that for goods:

  • services received within 6 months are eligible
  • services can’t be related to goods already disposed of
  • services that have been used up don’t qualify

VAT included in rent paid up to 6 months before VAT registration can be reclaimed.  The case of Denise Jerzynek T/A Dale Interiors established that rents and similar services can be attributed to taxable supplies after the date of registration.

For help with VAT registration

Alterledger can register your business for VAT and help you reclaim the pre-registration input VAT that you are entitled to.

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