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Reclaiming VAT on deposit paid

  • Fellow
  • Practice Licence
  • 51 posts
  • # 118063

What is the position on claiming VAT on a deposit paid for the purchase of an asset.  I am asking for a charity that have paid a sizeable deposit on a mini bus but final payment is not due until delivery.  At what point can the VAT be reclaimed.

 

Thanks

Jane

  • Fellow PM.Dip
  • Practice Licence
  • 211 posts
  • # 118067

The invoice should be for the whole cost of van and it should show VAT (for the whole net Value) and below the gross it should say deposit value (deducted) and then the balance due after deduction of deposit.

VAT can be then claimed for the full amount, The date of claim would be the invoice date (tax point).

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