Hi there,I am hoping that somebody can help me with these problems : )
Where can I find a list of what is vatable at the standard rate, reduced rate, zero rated and exempt? I have printed out the whole notice 700 vat guide from HMRC which was what I was advised to look in to do this, but it has not helped me atall.I understand that this list would be exhaustive but how am I going to find out what I need to know? How did the rest of you find out? as none of the ICB courses cover this in detail atall. I am getting to the point at work where I am not entering invoices and receipts for weeks until I work out the vat situation for each of them.
If you have an invoice/receipt from a vat registered business with no vat breakdown would this be vatable or not?
If you receive an invoice/receipts from a business that is NOT vat registered but the item is vatable what should I do in this situation?
Are these items vatable? Bank Charges PDQ Machine bank charges Sagepay charges (based on the transactions) not the service invoice
Using Sage am I right in posting wages as a T9 tax code?
There is no definitive list only exceptions (as it would be unmanageable). However, it is not so hard.
1. Bills. A seller does not have to issue a VAT receipt unless the buyer asks for one (this is why service stations etc. sometimes ask if you want a VAT receipt - if they think you look like a business person! - a great way to find out if you are wearing the right suit lol ;)
So, always look at the receipt. Is there a VAT number? great and address? great. Without those you cannot claim back VAT (well, you can, but if challenged you may need to go back and ask for one, and that may not be easy to do!).
As for the rate, if in doubt always use Standard (but a quick bit of maths will help you decide). Either way the boxes on the VAT return do not have different areas for the different rates, so it makes little difference.
2. Invoices. If you are unsure what rate to charge, phone HMRC VAT Help (8am to 8pm) 0845 010 9000. Most businesses only sell a few different types of goods or services so it is fairly easy to get a handle on it after being exposed to bookkeeping for a while. When in doubt, charge Standard VAT (you can't go wrong that way, although a grumpy customer may well telephone and complain if you got it wrong, and if so, just issue a refund of the VAT).
