As a business owner, you might be wondering what kind of things that you can reclaim VAT back on.
There are a number of things that you could have the chance to claim back VAT.
It is important that you know what they are so that when you are going through your finances, you can take this into account.
Let’s look at some of the things that you can reclaim VAT on as a business owner.
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VAT On Property
If you fill out form 431NB, this is how you reclaim VAT on a new build.
You need to include all the documents that you have listed on your claim as proof so that the government can verify that this is not fake.
The VAT invoices must be valid and show the correct date of VAT otherwise you will not be refunded.
Also, if the claim is in your businesses name, you will need to prove that you have refunded the amount from your personal bank so it is best to include a bank statement.
If approved, you should receive your refund within 30 working days.
Claim back on your VAT for building materials
You can claim back on your VAT for building materials used for a variety for different purposes.
This doesn’t just include building a new home.
It also involves converting a property or building any form of non-profit residence.
For this to be reclaimable, you need to apply within three months of taking on the work, and the work and materials must qualify under the standard conditions.
Extensions and refurbishments are not eligible
Maintenance work such as extensions and refurbishments are not typically going to be eligible for claiming back VAT.
However, there are some exceptions.
For instance, you might be bringing back a derelict building up to code and ensure it’s available as accommodation once more.
This can be accessible through the DIY house builders scheme.
VAT On Charity
You need to be aware that there are special conditions related to charity and VAT.
You need to know these if you are involved in a charity, fundraise for a charity or provide supplies as a business to a charity.
Certain activities by charities are not covered by VAT, and as such, you will not be able to claim back.
This includes freely given donations, where donors are provided nothing in return.
However, VAT-registered charities do need to charge on all standard prices and reduced products or services that they sell.
Charities can also claim on input tax for purchases relating to taxables services and goods sold.
If you are building a property related to charity, you will also be able to claim back on VAT.
VAT On Purchases
There are certain purchases that you might have made that you are entitled to reclaim VAT on.
If you are travelling for business, you can claim VAT back on any of the following:
- Taxi fares
- Business flights
- Fuel for your car if you were working while you drove the car.
- Computer equipment that you have bought to kit out your office.
- When you work in an office, any gas and electric are also included in this bracket.
You can claim back any VAT that was attached to the price that you paid for the service.
Can You Claim Back VAT If You Aren’t Registered?
If your business is not VAT registered, then one of the good things about this is that you don’t have to charge your customers VAT either.
However, on the downside, what his also means is that you also can’t reclaim any VAT.
You should keep this in mind when you are deciding whether or not you should get your business registered.
So, the short answer is no.
If your small business is not VAT registered, then you will not be able to claim anything back.
Can You Claim Back VAT If You’re A Non-UK Resident?
Sometimes it is possible to claim back VAT on goods that you purchased in the UK if you are a non-UK resident.
But this is only applicable if :
- You visit the UK but live outside the EU and are returning home.
- You are an EU resident who is leaving the EU for 12 months or more.
- You are a non-EU resident but work or study in the UK and are leaving the EU for 12 months or more.
There are some items that you cannot claim VAT back on at all, and you can go online to find the full list of these.Contact us