Can You Reclaim VAT on Purchases Made Before VAT Implementation or Before Your VAT Registration?
VAT is only reclaimable on goods and services you (the registered taxpayer) paid for on or after the effective implementation date of the VAT Act which is dated by law of the Federation of St. Christopher and Nevis as November 1, 2010.
If you buy goods or services before you registered for VAT, you cannot reclaim the VAT you paid on them, as specified in the VAT Act section 35. You can only claim VAT on or after your effective date of registration.
Likewise, you cannot reclaim VAT on any of these goods:
- goods that you've completely used up before you registered for VAT
- goods that you have already sold or supplied before being registered, or have used to make goods you have sold or supplied before being registered
- goods that relate to supplies you make that are exempt from VAT
The word 'goods' includes goods that are intended for resale, and also goods that you keep as assets, such as computer systems, shop fittings, office equipment and furniture, tills, vans and other equipment. It also covers anything else you've bought that isn't a service, so it includes consumables such as stationery.