Im wondering if anyone can help me. I have purchased a tax package to help me with a partnership self assessment. My client has been willing to pay for this. They are now saying that they can claim the VAT back for it because I purchased it for them. The package was purchase by me under my company name so I am disagreeing with them. I am not VAT registered so I would not be sending a VAT invoice for this. What is everyones thoughts?
-- Edited by Sarah85 on Thursday 18th of December 2014 11:59:37 AM
I'd say you are right. Very simply - you are not VAT registered, they are out of luck :(
By purchasing the software via your business the licence is in your businesses name, not theirs and the invoice for the software is in your business name and not theirs.
You cannot produce a VAT invoice - therefore, when you pass on the cost as agreed (nice client!) the invoice will be your normal, simple, non-vat invoice, showing the full (inc VAT price).
There is no claim possible.
You could try ringing HMRC to see if they will let you pass it on - but I doubt it.
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Only thing I can think of... who paid? You or your client? I assumed above that you paid and are being reimbursed but if THEY paid.... it might be worth digging a bit - there could be a case for them claiming the VAT if they paid the original invoice.
This might not be possible, it is just my idea.
It is possible to "return the software"? I mean you could ask the supplier if they have a month return policy or anything in return for invalidating your product key.
Then you could ask the supplier to invoice your client instead, but they will own the licence for tax package.
This might have been an awful lot of garbage, but who knows.
