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VAT Question

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  • 30-09-2006 9:25am
    #1
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,208 Mod ✭✭✭✭


    Just wondering how vat for comapnies works.

    If I was to ask some one to buy something for me with their vat number and I pay for it would there be anything dodgey about that?


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    #2
    gonk
    Closed Accounts Posts: 144 ✭✭gonk


    kearnsr wrote:
    Just wondering how vat for comapnies works.

    If I was to ask some one to buy something for me with their vat number and I pay for it would there be anything dodgey about that?

    Yes. VAT registered companies are only allowed reclaim VAT on purchases they make directly for their own company's use or on goods they buy for resale. When they resell goods, they must charge VAT at the appropriate rate on the resale price and remit that to the Revenue with their bi-monthly return. In the scenario you describe, if the VAT registered person didn't charge you VAT in turn they would be breaking the law and also liable to interest and penalties on the VAT they should have collected from you.


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    #3
    AdMMM
    Registered Users Posts: 9,472 ✭✭✭AdMMM


    I don't think there'd be much of a problem with a company buying something for themselves then deciding they don't want it and give it you to instead :P


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    #4
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,208 Mod ✭✭✭✭godtabh


    |.Murderer.| wrote:
    I don't think there'd be much of a problem with a company buying something for themselves then deciding they don't want it and give it you to instead :P


    Thats what I was hoping.

    Looks like I need a new laptop and if I could buy one with out VAT it would save me a few quid.

    While it would be a personal computer I would be using it for work if I brought some home with me.


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