Unfortunately its not all the VAT you have suffered in the last 2 years, as you can only claim back the VAT on goods that you have acquired in the 3 years prior to registration which are still held in stock (or used to make other goods which are still held in stock) and originally acquired for business purposes.
Equally, it also includes the VAT on any capital assets such as equipment which you have purchased in the previous 3 years, but I am afraid any VAT suffered on goods or items that have been sold on to customers cannot be re-claimed once you have registered.
You are also able to recover the VAT incurred on services, which have been supplied within 6 months prior to the date of registration, assuming they were also supplied for the purpose of the business.
By Jo Nockels
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