Charging Vat when not registered.

Scrappycoco

I have just bought goods online and received an invoice. The invoice states that I have been charged VAT @ 20%, but the company is not VAT registered.

Can a company actually charge VAT if not registered?

tripled

Technically not, however they can't reclaim VAT on input costs either, so would normally charge a higher price to offset this.

Does the total price you have been charged matched the advertised price? If so it is irrelevant from a consumer perspective, you have been charged what was agreed. It more makes a difference to a business that might expect to claim the VAT back.

molerat

Charging VAT when not registered is an offence and there are penalties for doing so.

Scrappycoco

The advertised price is what I have been charged but it does state this included 20% VAT. It states this on my invoices as well,

tripled

Scrappycoco said:

The advertised price is what I have been charged but it does state this included 20% VAT. It states this on my invoices as well,

Assuming the business turnover is under the VAT threshold, it's as likely to be ignorance to the rules as anything. Rather than charging you, for example, £12 inc VAT (which would be £10+VAT on the invoice), they should just be charging you a straight £12. However, if they are deliberately trying to give the impression they are collecting VAT but are not handing it over to HMRC, then that is straight up VAT fraud. If in doubt, you can report them to HMRC to look into.

DullGreyGuy

Scrappycoco said:

I have just bought goods online and received an invoice. The invoice states that I have been charged VAT @ 20%, but the company is not VAT registered.

Can a company actually charge VAT if not registered?

How do you know they arent VAT registered?

Savvy_Sue

DullGreyGuy said:

Scrappycoco said:

I have just bought goods online and received an invoice. The invoice states that I have been charged VAT @ 20%, but the company is not VAT registered.

Can a company actually charge VAT if not registered?

How do you know they arent VAT registered?

Well, if they were, the invoice would say so and it would give a VAT registration no. 

DullGreyGuy

Savvy_Sue said:

DullGreyGuy said:

Scrappycoco said:

I have just bought goods online and received an invoice. The invoice states that I have been charged VAT @ 20%, but the company is not VAT registered.

Can a company actually charge VAT if not registered?

How do you know they arent VAT registered?

Well, if they were, the invoice would say so and it would give a VAT registration no. 

It should do but we dont know that it didnt... we just know it showed VAT being added at 20%

tightauldgit

Scrappycoco said:

I have just bought goods online and received an invoice. The invoice states that I have been charged VAT @ 20%, but the company is not VAT registered.

Can a company actually charge VAT if not registered?

If they are genuinely not VAT registered then no. If they are VAT registered and just invoiced wrongly its more complicated.

Mistral001

This is probably done out of ignorance rather than intent as has been said.  It is a bit like firms who advertise that something is VAT-free or "we pay the VAT for you" when in fact they just sell it at lower price and add the VAT to bring it up to a price that seems to be VAT-free.

Scrappycoco

DullGreyGuy said:

Savvy_Sue said:

DullGreyGuy said:

Scrappycoco said:

I have just bought goods online and received an invoice. The invoice states that I have been charged VAT @ 20%, but the company is not VAT registered.

Can a company actually charge VAT if not registered?

How do you know they arent VAT registered?

Well, if they were, the invoice would say so and it would give a VAT registration no. 

It should do but we dont know that it didnt... we just know it showed VAT being added at 20%

I would not have queried it if there was a VAT number. And, it is a legal requirement if VAT registered to display your VAT number on your website.