When can I deduct VAT on purchases when I start a new business?

Main rule is that paying VAT and deducting VAT is possible when your company is registered for VAT. In case you have made acquisitions for business purposes before registration for VAT you can make so called opening stock deduction when your registration for VAT is ready. See detailed instructions.

Opening stock deduction:

When starting a taxable business in VAT, a taxable person may, subject to certain exceptions, deduct VAT on goods or services which he has acquired or manufactured for business purposes.

The taxable person shall be entitled to deduct the tax which was included in the purchase price of the goods or paid at the time of importation, intra-Community acquisition or manufacture of the goods. The tax may be deducted in proportion to the value at the time of deduction. The purchaser must have the original invoice of the goods and a note for the purposes of deduction.

You can deduct your initial storage and equipment you are using in your business if you have the purchase invoices. However, if the value of the storage and equipment is now less than at the time of purchase you have to take that into consideration. There is no time limit for opening stock deduction.