VIT30500 | How to treat input tax: when input tax can be claimed

From HM Revenue & Customs · VAT Input Tax

The timing of input tax claims has a direct effect on the overall payment (or repayment) made or received in any given tax period.

The basic rule that says when input tax may be claimed is set out in regulation 29(1) of the VAT General Regulations 1995. VIT11500

Regulation 29 (2) deals with evidence for deducting input tax. VIT11500

You cannot deduct input tax before the tax has been incurred.

For practical purposes this means:

for supplies of goods and services - the tax point VAT Time of Supply
for imported goods - the date of the import declaration IMPS Imports; and
for goods removed from a customs and/or excise warehouse - the date of removal VAT Supplies in Warehouse and Fiscal Warehousing

Only someone who is a “taxable person” at the time the relevant supplies were received can exercise the right to deduct input tax. However, you may be able to claim pre-registration input tax on goods and services once you register for VAT if certain conditions are met. See VIT32000 for more details.

Someone who is registered for VAT in the UK is recognised as being a taxable person.