Originally posted by MrButton
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Taken from the link as per the above post:
15.2 Reclaim of VAT on capital expenditure goods
If you use the Flat Rate Scheme, you can reclaim the VAT you have been charged on a single purchase of capital expenditure goods where the amount of the purchase, including VAT, is £2,000 or more.
You deal with these capital expenditure goods outside the Flat Rate Scheme. This means that you claim the input tax in box 4 of your VAT return.
If the supply is:
•more than one purchase
•under £2,000 including VAT, or
•of services
then no VAT is claimable, as this input tax is already taken into account in the calculation of your flat rate percentage.
15.3 What counts as a single purchase of capital goods?
The normal VAT rules are used to determine whether any particular supply is one, or more than one, purchase and whether supplies are of goods or services.
Examples of a single purchase are:
•a computer package (computer, printer, camera, scanner, speakers etc.) bought as one package is one purchase of capital expenditure goods. If the package costs £2,000 or more (incl. VAT) then input tax can be claimed
•items of kitchen equipment (a pizza oven, a fridge and a dishwasher) bought for a restaurant. If all the items are from one supplier at one time, then they count as one purchase of capital expenditure goods. If they are from three different suppliers or at three different times then they will be three purchases and each must be £2,000 or more (inc VAT) to qualify for a reclaim of VAT
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