We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Charging Vat when not registered.

Options
2»

Comments

  • Mistral001
    Mistral001 Posts: 5,428 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    Savvy_Sue 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.

    The problem is that websites and invoices are not policed very well to ensure who puts what on them.  HMRC or Trading Standards usually only take action if fraud is suspected.  If you suspect that this firm is actually charging VAT without being registered as VAT, which as others have said is illegal, then I would contact your local Trading Standards or HMRC.
  • DullGreyGuy
    DullGreyGuy Posts: 18,566 Forumite
    10,000 Posts Second Anniversary Name Dropper
    Savvy_Sue 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.
    My understanding, and it could be wrong, is the VAT number is only required to be on a website if it is transactional... if you cannot enter into a contract via it then there is no requirement.

    Similarly on an invoice it needs to be on a VAT invoice/receipt but there is no legal requirement for any invoice/receipt to be issued unless a VAT receipt is explicitly requested by a VAT registered customer. 
  • cymruchris
    cymruchris Posts: 5,562 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Have you asked them for their VAT number?
  • Archergirl
    Archergirl Posts: 1,845 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I  realise this is an old post but I am not VAT registered yet eBay charges VAT on my goods, why should my sellers have to pay VAT when I do not earn enough to have to pay it? It is an overseas thing so is it Brexit rules? If anyone asked me for my VAT number I would be in trouble....
  • DullGreyGuy
    DullGreyGuy Posts: 18,566 Forumite
    10,000 Posts Second Anniversary Name Dropper
    I  realise this is an old post but I am not VAT registered yet eBay charges VAT on my goods, why should my sellers have to pay VAT when I do not earn enough to have to pay it? It is an overseas thing so is it Brexit rules? If anyone asked me for my VAT number I would be in trouble....
    This will be for goods you are selling to certain EU countries like France?

    Export business is different, as a buyer you have to pay importation VAT irrespective of if the seller is VAT registered or not. Certain EU countries have now adopted a similar approach to the UK in that orders under a certain value the French VAT has to be collected at point of sale not point of import but for sales made via "market places" like eBay that obligation is on the market place rather than the individual sellers.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.