Vat category
Question asked by Shirley wyatt 10 years ago
If a supplier is not vat registered do I select 'not on vat return' or ' 0% vat' when entering a purchase invoice? And what's the difference?
Hello Shirley,
I think you are asking for Tax advice here rather than technical advice?
I have looked at HMRC and cannot find a definitive answer.
Personally, I include all suppliers like these at 0% VAT. This means I can audit the details on the VAT return more easily and of course it does not affect the amount paid to HMRC.
G
Best answer
Hi Shirley,
If the company is not VAT registered then you will need to select the 'not on vat return' option. The 0% applies to specific goods or services which are not liable to VAT but will still need to be shown on the VAT return.
Kind regards,
Michael
AAT teaches that all purchases must be shown on the VAT return, are you certain I should select the 'not shown on VAT return' option?
It depends on the good or service. Some are included at 0% and some are not required to be on the VAT return.
Please see the following link for any further details: http://www.hmrc.gov.uk/vat/forms-rates/rates/rates.htm#4
Kind regards,
Michael
All the goods are VATable, but some of our suppliers are not VAT registered. In this instance, do I select '0% vat' opposed to 'not on vat return?'
Hello Shirley,
I think you are asking for Tax advice here rather than technical advice?
I have looked at HMRC and cannot find a definitive answer.
Personally, I include all suppliers like these at 0% VAT. This means I can audit the details on the VAT return more easily and of course it does not affect the amount paid to HMRC.
G
Best answer
Just to end the searching, there is no definitive answer to this and I've never seen anything to indicate that HMRC care, one way or the other.
To my mind, and I think the most popular approach, is to consider supplies (of goods or services) from a non-registered UK supplier as being "outside the scope" and so not appearing on the VAT return.
As the 0% rate in CB is reserved for zero rated and exempt items I personally find it easier to check if they are not mixed in with these other supplies.
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