My boss isn't vat registered. Some of the invoices to his customers have had vat on materials. As not registered I know that he shouldn't charge vat, but just how wrong is it ??
It's very wrong and he can't add VAT to an invoice without being VAT registered. Is he actually adding VAT to the invoice or simply adding it to the cost of the item sold.
eg he buys an item for £50 + VAT so his invoice says £100 labour £60 materials Total £160. That's absolutely fine
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John
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