Quick Question About Vat

[Fargo]

If someone adds vat to anitem they are selling,, would that mean that the person is registered themselves for VAT..

ive just bought a pen drive on eBay... got is for 16 quid.. then on top of that 5.50 is added for packing and posting by 'other courier' and 1.50 for postal insurance. AND then on top of that 3.50 off for VAT.. pushing the cost to 27 odd quid..

Now i smell a little price inflation thing going on,, ie sell the itme cheap but add lots on packing, posting and VAT.

so what you all reckon.. should he have a vat number if he is charging vat

[amolkarnik]

The seller needs to be to charge VAT. The seller also needs to put their VAT number on the invoice.

[Fargo]

sorry amol,, didnt understand your first sentance,,

are you agreeing that if the seller is charging vat he must have a vat number and this should be on a VAT invoice..

[janey]

As far as I am aware, they only have to give vat number on invoice if for goods over £100 ;)

[Fargo]

As far as I am aware, they only have to give vat number on invoice if for goods over £100 ;)

are you sure,, what about all the times when filling up with petrol, youre asked if you want a vat reciept...

brainwave,,, if just asked the finacial director here at work,,, it seems that if someone is charging VAT then they have to be vat registered..whatever the cost of the goods..

what say you, people with there own business'

[amolkarnik]

apologies.

should read- seller needs to be VAT registered to charge VAT. Seller also needs to put the VAT number on any invoice that you charge VAT on.

You normally get asked about VAT receipts in case you need to claim VAT back

[Fargo]

ahh thats better,, lol thats what i thought.. so ive called his bluff, i asked for hsi vat number and he replied back, "why, is that a problem for you paul"

so i replied back "not a problem for me,, i assume that you are VAT registered if you are charging me VAT,, and if im to claim the vat back myself then could i please have a VAT invoice..

[amolkarnik]

Report him to the HMCE. I am sure they'll be happy to hear from you.

[Fargo]

now he as agreed to a VAT invoice,, i wonder if it is for real,, we shal see.,, would be a shame to report this eBay powerseller who has an eBay shop but mysteriously has chosen to hide all his 514 feedback remarks, when he has 10 negatives in the last 12 months with 2 in the last month..

[amolkarnik]

something doesnt sound right.

[Dave-Ellen]

yup, one must be VAT registered to add it on..............and its a pain in the proverbial :winky:

got my VAT return to do when I return

[amolkarnik]

get my accountant to do it. besides i am registered for a flat rate scheme. works well for me and makes it relatively painless

[Dave-Ellen]

get my accountant to do it. besides i am registered for a flat rate scheme. works well for me and makes it relatively painless

that costs money

should be ok as I try & keep it all tidy just a pain

[Fidgits]

was going to add - but as above, if he is charging VAT, he has to be VAT registered, and is legally bound to provide you with his VAT number if you request it...

[Bazza]

As far as I am aware, they only have to give vat number on invoice if for goods over £100 ;)

are you sure,, what about all the times when filling up with petrol, youre asked if you want a vat reciept...

brainwave,,, if just asked the finacial director here at work,,, it seems that if someone is charging VAT then they have to be vat registered..whatever the cost of the goods..

what say you, people with there own business'

to charge VAT you must be VAT registered by law, if you are not, and you attempt to charge it, you are defrauding the goverment!!!

if you issue an invoice stating VAT it must also show your VAT reg no.

its not a legal requirement to issue a receipt, if under £100, only if it is requested

petrol is a good example of two kinds of purchaser:

private individual ,who doesnt require a vat receipt but will still be issued a receipt but this is not valid for claiming back

where as a business user will need to produce a VAT receipt if he is going to claim it back, or his company is , and generally will have to ask for it in addition to the normal receipt he is given

[Fargo]

well done for clearing that up bazza.

[tdiplc]

Quite right Mr Bazza

Fargo, you can validate him and his vat number on 08450 109000

[Fargo]

cheers mark

[AltezzaScott]

A company doesn`t have to register for VAT until they have a turnover of £58k per annum...

eBay states, that all prices should already INCLUDE VAT, therefore, he is trying to charge you VAT twice!!

[Fargo]

thats interesting scott, youve raised 2 points there..

1) can anyone point me to a document that backs up the argument of being vat registered or not,, as now there are 2 differing views on this.. they are:- to charge vat you must be registered,, or you only need to be regsitered once you earn 58k+.

2) you mention ebays terms that the price should include vat,, does that apply to Buy It Now items (where the final price is know) or does it apply to auction prices (where the final price is not know in advance)

the only place he mentions vat is in the a Summery of his Selling Policies in which he says "

European buyers please add 17.5% VAT to all bids and any agreed postage or delivery cost, but buyers from rest of world pay no sales fees. If you pay by VISA/AMEX then please allow 3% surcharge. If you pay cash (at bank) or cheque then please add 0.01% or £0.75p to cover bank charges"

scott have you a link to the bit in the terms it mentions vat.

[Bazza]

1. to charge VAT you MUST be registered

2. if your turnover is greater than £58k you must be registered, although you do not need to earn anything before you can register

3. to charge VAT on a price it must say +VAT or words to the same effect

vat page

[johnboy]

If your turnover is under 58k you can still volunteer for vat registration as well.

just thought i would add that :)

you still get a vat no. the same and it must be on all invoices if you charge vat

[Fargo]

so if you earn 58k or not,, the fact remains that if you charge vat you must be registered in order to give that vat to the goverment..

[johnboy]

yes thats right

[Fargo]

great stuff