VAT Advice for buying at the Sales

Buying at the yearling sales – advice on reclaim VAT on your purchase from the VAT Solution

Upon successful registration, you may reclaim VAT on:

• The purchase price of the horse (if VAT was charged at sale).
• Ongoing expenses, such as training fees, veterinary bills, entry fees, transport, and administration costs.

What If You Sell Your Racehorse?

If you have subsequently sold the horse, there are VAT implications you need to be aware of.

VAT Must Be Charged on the Sale
If you are VAT-registered and sell a horse, VAT must be charged on the sale price and accounted for in your VAT return. The responsibility for correct VAT treatment lies with the ownership entity.

A Few Final Tips

• If you intend to register to reclaim VAT, ensure the horse’s sponsorship is registered with the BHA as early as possible. Delays in sponsorship registration may limit the amount of VAT you can reclaim.
• Ensure invoices are accounted for in the correct VAT quarter – delaying the reclaim of purchase VAT or declaration of output VAT may result in delays with HMRC.
• Contact the ROA VAT Solution for assistance with your VAT. Racehorse VAT can be nuanced; our dedicated VAT team is on hand to offer tailored advice and assistance with new VAT registrations and ongoing compliance.
  Email: [email protected] | Call: 01183 385685 to speak with one of the team today.