You can generally reclaim VAT on goods, materials, and services that you bought before registering for VAT.

  • You can reclaim the VAT on most goods and materials up to 4 years before registering for VAT, as long as you still have that item in the business on the date that you become VAT registered.

  • You can also reclaim the VAT on services (such as telephone bills and accountancy fees) up to 6 months prior to VAT registration.

How do I use Pandle to reclaim VAT incurred before my VAT registration?

Your VAT reclaim will be included when you process a VAT return in Pandle for the first time.

Let's say that your business registered for VAT on 01/02/2017. This date is reflected in your VAT settings.

To reclaim VAT for a period of 1 year before this date, go to the Company Settings menu.

Select the 'Financial Info' tab.

Click the 'VAT Schemes' button.

Click the 'Edit' icon next the appropriate VAT scheme.

If the scheme is invoice-based, then edit the start date so that it includes transactions which are dated before your registration date.

If you use the cash accounting scheme or the Flat Rate VAT Scheme then add a new invoice-based scheme from the date you want to reclaim transactions from, up until the start date.

Edit the VAT code for purchases you want to reclaim VAT on

Once the VAT scheme is updated or added, you can edit the VAT code for the purchases/expenses you want to reclaim VAT on. An easy way to do this is through the advanced filter and bulk editing on the View Transactions page in Pandle.

Click 'Accounting' in Pandle's navigation menu, and select 'View Transactions'.

Click the filter icon, and set the date range for the period up to the registration date. In our example we have selected the category for the transactions we want to change.

We can now select the transactions we want to edit. Click 'Edit Checked' and change the tax code from 'NV' to 'ST'. This will update all of the selected transactions at once, so you won't need to go through them one by one.

Once you run your first VAT return, it will include all purchases with the ST code.

Related articles

Setting up VAT in Pandle

Running a VAT return

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