VAT - Can my client claim it back if I'm not Registered?


F

Fred Finisterre

Hi,

I have a non-VAT registered Limited Co and am looking to supply a local
small office with some IT gear.

If I'm not VAT registered, and I buy the gear and then sell it on to them,
can they claim VAT back?

If not, how do I go about doing this deal?

Cheers,

Fred.
 
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D

DoobieDo

Hi,
greetings,

I have a non-VAT registered Limited Co and am looking to supply a local
small office with some IT gear.

If I'm not VAT registered, and I buy the gear and then sell it on to them,
can they claim VAT back?
no.

If not, how do I go about doing this deal?
a) register.
b) sell it without adding VAT.
c) let them buy it themselves from your supplier.
mine's a pint.
 
T

Tim

If I'm not VAT registered, and I buy the gear and
then sell it on to them, can they claim VAT back?
Are you charging them VAT? As you aren't registered, I assume not.
Then there is no VAT for them to claim back.
 
J

John

Tim said:
Are you charging them VAT? As you aren't registered, I assume not.
Then there is no VAT for them to claim back.
Hmmm. There seems to be some confusion here.

Option 1. (OP isn't VAT registered)
OP buys £5000 of computers from Dabs.com. OP pays Dabs £5000 + VAT. OP
isn't VAT registered so just pays £5875 to Dabs.com. OP then sells it
Customer for £5875 + £1000 Profit. Customer doesn't get to claim the VAT
back since OP isn't VAT registered. Goods cost Customer £6875 (including
£875 of VAT that Customer can't reclaim).

Option 2. (OP is VAT registered)
OP buys goods for £5000 + VAT then reclaims VAT so it costs him £5000.
OP then sticks on his profit (£1000) and adds VAT to the total, making
£6000 + VAT. Customer then reclaims VAT and the whole lot ends up
costing the customer £6000.

In case 2 the customer is better off by £875 (thanks to VAT registration).

As doobiedo said, the options are registration (3-6 weeks time and some
hassle) or let the customer buy the goods direct and invoice them for
procurement/installation or something.

If the OP regularly sells hardware he needs to be VAT registered.

I don't understand doobiedo when he says "sell it without adding VAT".
The OP can't choose whether or not to add VAT, since it is paid to
Dabs.com and he has no way to reclaim it (not being VAT registered).

John

PS. I would rather work the whole of this weekend than buy hardware from
Dabs.com.
 
T

Tim

If the OP regularly sells hardware he needs to be VAT registered.
Why? If his turnover is below the registration limit?
[He might sell to non-registered consumers...]

PS. I would rather work the whole of this
weekend than buy hardware from Dabs.com.
Why??!
 
J

Jonathan Bryce

Fred said:
Hi,

I have a non-VAT registered Limited Co and am looking to supply a local
small office with some IT gear.

If I'm not VAT registered, and I buy the gear and then sell it on to them,
can they claim VAT back?

If not, how do I go about doing this deal?
Get them to buy the hardware direct from your supplier, and invoice them
separately for consultancy and installation.
 
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J

John

Tim said:
If the OP regularly sells hardware he needs to be VAT registered.

Why? If his turnover is below the registration limit?
[He might sell to non-registered consumers...]
We know for sure that he sells to registered consumers from the original
post. His turnover is irrelevant.
In short, because their customer service is crap.

In length, because ...

About a year ago I was waiting for a part from them that was meant to be
in "within 3-4 days" or something. After a week I emailed them asking
what the availability was (I have no problem using email rather than the
phone for these things). I received a completely useless automatic reply
that wasn't even vaguely connected with the question. I replied to the
email saying that if I received another automatically generated email I
wouldn't buy from them again. I received another automatically generated
email and have since put all my one-off hardware stuff through Novatech
and eBuyer. It doesn't matter a toss to them, but gives me a great sense
of satisfaction :)
 
P

Peter Saxton

Tim said:
If the OP regularly sells hardware he needs to be VAT registered.

Why? If his turnover is below the registration limit?
[He might sell to non-registered consumers...]
We know for sure that he sells to registered consumers from the original
post. His turnover is irrelevant.
The original post makes no mention that he is selling to a VAT
registered consumer. He only asks if the VAT can be claimed back yet
he seems to understand little of the concept of VAT.
 
T

Tim

If the OP regularly sells hardware he needs to be VAT registered.
Tim said:
Why? If his turnover is below the registration limit?
[He might sell to non-registered consumers...]
John said:
We know for sure that he sells to
registered consumers from the original post.
So what? Just because someone sells to one/more registered clients does not
mean that person "needs to be VAT registered" (assuming they are below the
threshold).

For instance, 95% of clients may be non-registered while only 5% are
registered - now, why should they register??

It is if you are talking about compulsion to register (which you appeared to
be doing).
 
R

Ronald Raygun

Tim said:
So what? Just because someone sells to one/more registered clients does
not mean that person "needs to be VAT registered" (assuming they are below
the threshold).

For instance, 95% of clients may be non-registered while only 5% are
registered - now, why should they register??
What if those 5% of clients account for 95% of his turnover? :)
 
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T

Tim

Tim said:
What if those 5% of clients account for 95% of his turnover? :)
:) :) :))
That'd be the same - I missed out two (very important!) words; rewritten :-
"... 95% of clients **by turnover** may be non-registered while only 5% are
registered ..." !!
:) :) :))
 

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