ex vat online shoping

the_pen_turner

im looking to buy some stuf from the uk.
it will be for my business and im vat registered.
there is an option at check out to buy without the vat by putting in my vat no.

how does that work.
does the vat never exist or is it still atributed to me.


whats the point of doing it this way. you can still claim it back. all you are doing is improving cash flow by still having the vat.

jimmii

It means you don't have to go about claiming it back which is obviously a lot handier! It's not as straightforward claiming vat back from other countries so this just saves admin for everyone. Its not so bad for the UK but its not as convenient in some countries and everyone has different rules on how it works.

Rulmeq

When you're doing your VAT return, you will enter those goods in the intra-EU purcahses section, and you don't pay the VAT in the UK. But you will still charge VAT when selling them (so you will pay the full amount to revenue, instead of just the portion you added "value" to - this is just a technicality, the amount revenue would get doesn't change, it's just how it would look on paper).

The benefit to you is that you don't need to deal with 26 other countries to claim your VAT back (you wouldn't be able to claim it from revenue, because they wouldn't have received it, you would have to go to each country individually and register for VAT, and then make the claims). BTW, if the company you are buying from goes over the VAT thresholds ( https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf ) then they must register for VAT here (so, lets say you purchase more than 41k from that company, or 75k if they have an exemption, then you could cause them to have to register for VAT here, and then you would just pay the VAT to them as normal)

the_pen_turner

thanks . i didnt know that.
so when i bought stuff before i never claimed the vat on those back. so our revenue has nothing to do with the vat , it just goes in to the accountant as a no vat purchase
the stuff i would be buying would be tool accesories or consumables. i wouldnt be directly charging them out again

StupidLikeAFox

If you paid UK VAT on a UK purchase you need to claim that back from HMRC.

jimmii

the_pen_turner wrote: »

thanks . i didnt know that.
so when i bought stuff before i never claimed the vat on those back. so our revenue has nothing to do with the vat , it just goes in to the accountant as a no vat purchase
the stuff i would be buying would be tool accesories or consumables. i wouldnt be directly charging them out again

If you've purchased from the UK before and paid UK VAT and the accountant hasn't mentioned it that would be a bit of a worry what else are they missing.