No VAT registered...showing VAT in quote, NOT in invoice

keystone

Nicely summarised and better expressed than my effort but don't hold your breath on OP actually listening.

Cheers

PS B....r. I said I wouldn't contribute any more - rats!

dampdaveski

*Deep sigh*

philip1988

Brilliant thread. Thanks to all the long suffering contributors.

Could the OP confirm that he NOW understands how VAT for non VAT registered tradesmen works. (oh dear there goes another pig flying past)

phill99

adamchy wrote: »

No one is allowed to collect VAT except with permission from HMRC. Mind you, the trader could have been registered already in the past etc!

Evidently this is a subject that you have a lot to say about.

dktreesea

roblos71 wrote: »

Thx for your advice, first of all.

The reason for this post is that, after searching the Internet and asking HMRC, I was told that mentioning/charging VAT on a quote/invoice without being VAT registered is breaking the law.

In practice, I was quoted xxx +20%, showing yyy believing he was going to pay VAT. So, if the VAT man told me not pay it, on what grounds are you telling me the contrary?

Thx again,
Roby

If he's charging you VAT (i.e. all charges VAT inclusive) and isn't registered for VAT, he is breaking the law. You should pass all his details onto HMRC.

You should only pay the VAT exclusive amount. Ask him for a reduced involce. He is the one claiming his charge includes VAT, not you. Since he isn't entitled to collect it, as he is not registered for VAT, you don't have to pay it.

keystone

dktreesea wrote: »

If he's charging you VAT (i.e. all charges VAT inclusive) and isn't registered for VAT, he is breaking the law. You should pass all his details onto HMRC.

You should only pay the VAT exclusive amount. Ask him for a reduced involce. He is the one claiming his charge includes VAT, not you. Since he isn't entitled to collect it, as he is not registered for VAT, you don't have to pay it.

Ho Hum. Did you actually read the thread? Silly question, of course you didn't otherwise you wouldn't have posted this. The contractor has done absolutely nothing wrong. If you don't understand that perhaps you should read the thread because you clearly don't understand how VAT works either.

Cheers

Edit: In particular you should read Post 51.

shegar

The OP knows dam well whats going on, hes just trying to wind everyone up, dont bite and he will soon F... off.................With a bit of luck..:)

dktreesea

keystone wrote: »

Ho Hum. Did you actually read the thread? Silly question, of course you didn't otherwise you wouldn't have posted this. The contractor has done absolutely nothing wrong. If you don't understand that perhaps you should read the thread because you clearly don't understand how VAT works either.

Cheers

Edit: In particular you should read Post 51.

Yes, I read the whole thread. The invoice, as I understood it, said one lump sum, presumably including the tradesman's labour, "including VAT". I'm also an accountant, and 100% certain he is not allowed to charge VAT on his labour, not withstanding that he may just be including the VAT on the parts he bought to do the job.

System

did you skip all the posts when the op says that that invoice doesn't mention vat at all and it was only the quote that said vat was included?

ValHaller

dktreesea wrote: »

Yes, I read the whole thread. The invoice, as I understood it, said one lump sum, presumably including the tradesman's labour, "including VAT". I'm also an accountant, and 100% certain he is not allowed to charge VAT on his labour, not withstanding that he may just be including the VAT on the parts he bought to do the job.

He is not charging for VAT. I agree that this would be a dodgy practice if he is not registered for VAT and does not account to HMRC for VAT.

His turn of phrase means that when the sum agreed is paid, there is no further VAT liability.