Invoice from non-VAT registered supplier - The Book-keepers Forum (UK)

anthom-v · Member

Invoice from non-VAT registered supplier

Susie Sue · Senior Member

You only pay VAT if you have been charged it. If the supplier is not VAT registered then you will not have been charged VAT so therefore don't pay it. The amount still needs to be shown on your VAT return in the purchases box.

Merlion ABS · Senior Member

Is the supplier is not VAT registered, then you cannot claim the VAT back as Susie says, you haven't been charged it.

On a plus side though, the whole expenses is tax deductible.

Brewsie · Veteran Member

Susie Sue wrote:

The amount still needs to be shown on your VAT return in the purchases box.

Sue - I disagree.

The extract below is taken from the Business Link guide to completing a VAT return.

Box 7 includes only purchases that you paid VAT on (even at 0%). Purchases with no VAT don't get included.

Business Link guide

Box 7: your total purchases excluding VAT

Enter the total figure for your purchases (excluding VAT) for the period, including:

the purchases on which you paid the VAT you put in Box 4
anything you bought that the reverse charge procedure applies to
any amount you put in Box 9 (value of goods acquired from other EU countries)

Don't include:

expenses like salaries and taxes
anything outside the scope of VAT like vehicle licences, MOT certificates and local authority rates

BackOfficeGroup · Guru

zero rated and standard rated go in Box 7
outside the scope items do not.

Be careful of the difference, a purchase with no VAT is not necessarily exempt but could be zero rated and should be included.

If a supplier is not VAT registered, they should still be included as they are still a purchase.

This area is always a bone of contention but I can say that HMRC do not mind so long as the correct amount of VAT is shown.

P

Wella · Expert

Hi Brewsie

This has been debated on a previous post (Quite some time ago)

I have had two conflicting answers directly from HMRC, intitially I was told that supplies from a non VAT registered person was outside the scope of VAT and therefore not included, then after a debate on here, I phoned again to be told that if the goods would normally be chargeable or exempt, they should be included.

After being pointed in the direction of the VAT700 guide (which still isn't difinitive), I have opted to include all such purchases on the return. Fortunately they are few and far between and aren't usually a problem.

Bill

Susie Sue · Senior Member

I thought that if VAT would be charged had they been VAT registered it was included on the return - if it is outside the scope of VAT ie wages etc then it isn't included (?)

semsley · Guru

I agree with Sue, it's the purchase itself not whether the supplier is VAT registered. If say you bought widgets which normally are subject to VAT but the supplier is not VAT registered the widgets don't become outside the scope of VAT, therefore, they should be included as purchases on the VAT return.

anthom-v · Member

Many thanks to all who have posted in response, i finally have some idea of what i'm doing!