Have a friend who registered himslef for Income Tax on 01.01.2009. Income Tax Returns for '09 & '10 are still outstanding. He did not register for VAT. He had a small turnover in 2009 but in 2010 secured a big contract and had sales to the UK of GBP170,000. Made very little profit as income was spent on goods and services from the UK. I have told him there may be a potential VAT problem. Can he backdate the VAT registration and put the invoices through a 0%. Can he reclaim the UK VAT incurred?