Andrew Needham looks at how a business can reclaim input tax after it has de-registered for VAT.
The right to deduct input tax stops at the date a business deregisters for VAT. VAT can, however, be reclaimed where services supplied after the date of deregistration relate to the business activity carried on while the business was registered.
This also applies when the deregistered business did not claim input tax to which they were entitled while registered, including that on goods, although these claims are subject to the four-year capping provisions. However, the right to claim back VAT on goods does not apply to goods purchased by a business after the date of deregistration.
What can a business claim for?
If a business incurs input tax after de-registering for VAT which relates to its
