Flat rate scheme capital expenditure

[Cathi]

I wonder if someone could kindly help me with the following.

I believe businesses on the flat rate scheme are able to reclaim input tax on capital expenditure for goods costing £2,000 or more.

However, what if those goods were recently purchased from overseas outside the UK / EU?

For example, a machine costing approximately £13,000 from Korea incurred customs VAT of £2,600 that was paid over to a UK-based import specialist.

In this situation can a business reclaim the £2,600 on their VAT return?

Many thanks 

[VAT-adviser]

yes you can make a claim as the capital expenditure is over £2k

[Author]

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