VAT
Stephen started this topic @ 08:56 on 20/02/2003
I am on the verge of buying some mchines from Italy.
They have said that if I give them my VAT number, they do not have to add VAT to the price.
I have a VAT number from a now non existant business, rather than make the company dormant, we have been sending in nil returns.Both end of year tax accounts and VAT. (it is a limited company).
I had not yet decided whether I was going to use the limited company and the VAT number for this new venture.
Does anyone know whether they are right by not addiding VAT if I supply a number?
If I just tell them to add the VAT and pay it, can I still claim it back ? and
If I do not pay it, how does the VAT man get to know whether it has been paid or not?
And finally, if i decide to use the company and VAT number for this new company, the tax man and VAT man will have to be told the new name we will be trading as and the type of business, can we use the old VAT number under these circumstances OR should we notify them of the change of business first.
Thanks
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RE: VAT
guest | 20/02/2003 07:10 PM
If you give your EU supplier a current valid UK VAT number they can zero rate the sale.
Your 'old' VAT number is still valid if you are submitting nil returns, regardless of whether you consider it dormant or not.
If you get the supplier to charge VAT you cannot reclaim it in the UK you would need to seek reimbursement from the tax authorities in the other EU country (in this case Italy). So in effect it doesn't matter to the UK VAT man whether you pay it or not BUT you would be liable to pay Acquisition Tax on the purchase at 17.5% but you also claim this back as Input Tax on the same return, therby making a nil net entry. However, it is important to do this for the balance of payments figure and to avoid a fine!
Yes you would need to advise both IR and HMCE re the trading name change but there is no problem with using the company and VAT number in the meantime.