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vat treatment - capital goods

  • 21-05-2018 3:39pm
    #1
    KBD85
    Registered Users, Registered Users 2 Posts: 123 ✭✭


    When setting up a business...

    If I buy capital goods, e.g. tools and pay vat on this purchase can I claim an input vat credit for good held at the beginning of the first taxable period?

    If not, how is this vat expenditure treated?

    Thanks.


Comments

  • #2
    heretothere
    Registered Users, Registered Users 2 Posts: 635 ✭✭✭heretothere


    Not really sure what you mean by input VAT credit.

    But yes you can reclaim VAT on capital good you purchase after you become VAT registered.

    Treatment if you were VAT registered at time of purchase:

    Reclaim VAT on the purchase and capitalise the net amount (Price paid - VAT)

    Treatment if you were not VAT registered at time of purchase:

    Do not reclaim VAT and capitalise the full price paid.

    If they are small tools which won't last a few years I wouldn't capitalise them at all I'd put them down as expenses.

    Hope that's clear!


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