VAT exemption number

TomJG

Hi,

I'm making a purchase from the UK, and they told me I'd be exempt from VAT, living in the republic.

As I understand, there's a general number -- not a number specific to me...?

I need to give them the VAT exemption number. Anyone know what this is or how i'd get it.

MidlandsM

TomJG wrote: »

Hi,

I'm making a purchase from the UK, and they told me I'd be exempt from VAT, living in the republic.

As I understand, there's a general number -- not a number specific to me...?

I need to give them the VAT exemption number. Anyone know what this is or how i'd get it.

they can only zero rate the vat, if you have a vat no here....

sconhome

AFAIK this is only applied if you are a registered business or soletrader. If you do not have a VAT number registered to you, you can not be considered exempt from VAT.

amtc

VAT is payable at the point of supply. If you are resident here and receiving the service here you are liable to pay VAT, unless in turn you are VAT registered (or under a threshold in some cases).

Email revenue - I did, and by describing what I do, I'm zero rated.

This changed in 2009, but the law was in 2011 in the UK, so the company's advice may be out of date.

(BTW I clarified this with my accountant only last week)

srsly78

You still have to register. They need your vat number to confirm your eligibility for zero-rating.

You can still register voluntarily if beneath the threshold, is that the cause of confusion?

The_Bot

Very important to appreciate the difference between exempt and zero rating for VAT purposes.

Zero rating means you are within the scope for VAT but VAT at zero percent is applied to invoices. Exempt means the supply is not liable to VAT.

The distinction between the two is very important when it comes to recovery of VAT suffered on inputs. A person who makes solely exempt supplies cannot recover any input VAT while a person who makes solely zero rated supplies has full input VAT recovery (and thus would invariably be in VAT refund position in every VAT return).

mikey767

If you are a VAT registered business, and the goods are being put towards a business purpose, you should supply your VAT number to the UK company. They will then apply the 0% VAT rate to the goods. You will be required to account for the purchase on your VAT return by applying the rate applicable to the goods (ie 23%, 13.5%) and returning this amount in both boxes T1 and T2 on your VAT return (same amount is entered in both, making it cash neutral).

If you are not VAT registered, or not in business, the UK company should apply UK VAT. This VAT is not recoverable.

The_Bot

mikey767 wrote: »

If you are a VAT registered business, and the goods are being put towards a business purpose, you should supply your VAT number to the UK company. They will then apply the 0% VAT rate to the goods. You will be required to account for the purchase on your VAT return by applying the rate applicable to the goods (ie 23%, 13.5%) and returning this amount in both boxes T1 and T2 on your VAT return (same amount is entered in both, making it cash neutral).

If you are not VAT registered, or not in business, the UK company should apply UK VAT. This VAT is not recoverable.

This would only be cash neutral if the OP has 100% VAT recovery. If the OP is making any VAT exempt supplies then there would be cash/VAT cost to him as consequence of operating the reverse charge.