VAT Exempt

Dav0s

New member
I hear about some people that say "I ordered from by Dads business so I dont have to pay VAT" etc etc.

I ask...

What are the criteria to fit this no vat option? is it just any registered business?? I want to know if i couild save money!! :)

Thanks, reps available
 
All business must be VAT registered, and if you are VAT registered you can claim VAT back on items you buy for the company.

If you know someone who is high up in a small company that is VAT registered (and maybe also in charge of ordering) then you might be able to persuade them to get you some computer bits minus the vat.
 
name='Dave' said:
how do u know if they are VAT registered???

All businesses that make money need to declare their earnings This makes them vat registered. If they are not they will get a visit from the tax man and be forced to pay a heavy fine.
 
Actually onyone can create a limited company by going to companies house website and and choosen a comapany name. You then add on thing like VAT registered etc etc but these all cost money when heading off to the checkout on there site.

A few years a go a person could create a limited company and register as VAT registed and they could claim back all there tax that they had spent on the "company" So if you brought a new pc and you wanted to VAT back you would include it in your report to the tax man and so you brought it for the company. they knew what was going on and you did but that was the law.

Well a few years a go the goverment decideed that they would stop 1 man companys doing this as the goverment where loosing loads of cash so they said you now have to have 2 people or more in your company to clain back the VAT.

So what most people done was to hire there wives, girlfriends ect etc as PA's and put them on the books and paid them a wage. This way they would be paying there own money backto there bank account and they could still claim the VAT back.

Then finally the goverment threw the book at people and said nope enough is enough and you know have to follow a strict set of guidlines to claim back the VAT.

So unless you know someone who owns a moddle sized company and they are willing to put it through the books for you, you wont ever be able to buy anything VAT free.

Hope this answers your question.
 
Sorry to go ever so slightly off topic here...but in Australia we have a GST (Goods and Services Tax) which is currently @ 10%, and I believe it is similar to the UK's VAT. Any business here has the option to be GST or non GST compliant, meaning that if a business is GST compliant, they may claim the GST paid on any purchase or goods purchased. If a business is not GST compliant, they are not able to claim the tax paid. This compliance is checked through the use of an Australian Business Number (ABN), which links directly back to the Tax Dept.

GST is applied to all services or products, with the exception being certain food stuffs, Non profit Organisations and deemed necessary items.

Say for example a business buys 10 Dell computers at $1900.00

10x1900=$19,000

10% of 19,000 = 1900 (GST)

So the total paid by the business is $20,900. (purchase price + GST)

The business can now claim that $1900 back from the Tax Dept, when submitting their quarterly Business Activity Statement (BAS) as long as they are GST compliant. I presume this is a very similar situation in the UK? The Tax Dept in the UK would/should have a record of all business' who are able to claim the VAT, or are VAT exempt.

PV
 
thanks for the input. yes it is very much the same idea i understand but your tax is only 10%!!! omg ours is 17.5%!!
 
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