Im a little confused now after reading some of the posts about VAT. If a vat reg business recieves an invoice from a non vat reg business i take it means that the vat reg business can not reclaim vat on it. silly question i know!!
In this scenario the non VAT registered business would not have VAT on it's invoice.
The VAT registered business would include the amount of the invoice in the box 6 figure but there would be no associated VAT to include in box 1.
Conversely, if a VAT registered business issues a VAT invoice to a non VAT registered business then the non VAT registered business must treat the whole sum as the invoiced amount.
For example, £100 plus £17.50 VAT for services to a non registered business would be treated as £117.50 for services.
Hope that this helps,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have a question as well related to VAT returns. Few things that always confuses me.
We are VAT registered.
*UK purchase invoice with no VAT on it (for example - supplier is not registered, not charging VAT for any other reason or it is a receipt for parking, congestion, etc charge that is not VAT taxable)...is it going to BOX 7?? *purchase from EU country outside UK with no VAT on it and there is no info if the company registered for VAT. Is it going to BOX 7 or 9? *purchase outside EU do I need to put in any of the purchases boxes on VAT return form?
Box 7 should include all purchases that have a vat code T0, T1, T2 and T5, (thats all I use) anything that is T9 (out of scope ) doesn't need entering in box 7.
As for EU I've never dealt with it so can't give an answer sorry.
Steve's T codes will only make any sense to you if you use Sage.
Uk purchase with no vat will go to box 7 EC purchases will go in 7 and 9 I don't think you would report purchases outside of EU on the vat form (but I stand to be corrected on that one)
