From: derek 
Newsgroups: uk.finance
Subject: Re: Getting VAT back
Date: Wed, 02 Jun 2004 22:39:53 +0100


On Mon, 31 May 2004 18:08:32 +0100, Jonathan Bryce
 wrote:

>Martin Jones wrote:
>
>> I am a director of a limited company.
>> 
>> As we are not VAT registered, am I able to purchase computer parts and get
>> the VAT back, or do you need to be registered to do that?
>
>You need to be registered, and you need to be making taxable supplies in
>order to register.
>
>Registering normally means you pay money to Customs, not the other way
>round.
>

A very simple concept but hard to explain in a sentence or two. 8-((  

But one does one's best.

If your customers are normally VAT registered 14.9% of their total
bill will be VAT which they can reclaim. So no sweat for them.
Meanwhile, back at the ranch, you will be able to recover the VAT on
all your inputs. This will reduce their cost to you by 14.9%.

But if you are in an abnormal category. IE  normally deal with UK
charities, normally deal with VAT registered entities overseas in the
EU and many other complicated categories, it can be in your interests
to register. It makes a big difference to get it right.

To be honest if you are not dealing with simple retail customers on a
small scale, I'd speak to a local accountant. They don't bite.

If OTOH you are dealing with simple retail supply, and if you are
successful, it's only a matter of time before you must to register.

DG