Charging Vat when not registered.

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  • Mistral001
    Mistral001 Posts: 5,349 Forumite
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    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: 10,898 Forumite
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    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: 5,317 Forumite
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    Have you asked them for their VAT number?
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • Archergirl
    Archergirl Posts: 1,768 Forumite
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    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: 10,898 Forumite
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    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.
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