If you're considering canceling your VAT registration or have already done so, you might be wondering if you can still reclaim any VAT. The good news is that in certain situations, you may still be able to claim back VAT for a period of time even after deregistering. In this article, we will explore what you can reclaim after canceling your VAT registration, the deadlines for claiming VAT, and how to go about reclaiming it.
Reclaiming VAT after deregistering
Even after canceling your VAT registration, there are several scenarios in which you can still claim relief for VAT incurred while you were registered. Here's what you can reclaim:
Reclaim VAT you paid on goods (input tax).
Reclaim input tax on services.
Claim relief if your VAT bill included sales but the customer didn't pay you.
Deadline for Claiming VAT:
The deadline for making a VAT claim after canceling your registration depends on the type of claim you are making. Here are the deadlines:
VAT paid when buying goods: You have a maximum of 4 years from the date of the return to claim the VAT you paid.
VAT paid on services: You can claim VAT on services up to a maximum of 4 years from the date the VAT was incurred.
VAT relief on customer debts: You have a maximum of 4 years and 6 months to claim relief on customer debts.
Reclaiming VAT on Purchases
To reclaim the VAT you paid on eligible purchases while you were VAT registered, ensure that you haven't already claimed it on a previous VAT return. You can make a claim within 4 years following the VAT return that covered the relevant time period.
Reclaiming VAT on services
If you paid VAT on services after canceling your VAT registration, you can still reclaim it as long as the services are related to your taxable activities. For example, you can reclaim solicitor's fees. The claim must be made within 4 years from the date the VAT was incurred.
Claiming VAT relief on customer debts
In cases where you account for VAT on a sale but don't receive payment from the customer, you can claim relief on the VAT you paid to HMRC. This can be done even after canceling your VAT registration. However, you must identify the sale as a bad debt, and the claim must be made within 4 years and 6 months from the date the relief became claimable. If the debt is eventually paid, you will need to repay the VAT to HMRC.
How to Claim Back VAT after Canceling your Registration
Once you have deregistered for VAT and submitted your final VAT return, you can reclaim or claim VAT relief using a VAT427 form. This form allows you to provide the necessary details and documentation to support your claim. Form can be found at VAT427 form
Canceling your VAT registration doesn't necessarily mean you lose the opportunity to reclaim VAT. By understanding the types of VAT you can reclaim, the deadlines for claiming, and the process involved, you can ensure that you receive the VAT relief you're entitled to. Remember to keep track of your eligible purchases, services, and customer debts, and submit your claim within the specified time limits.