Ordering online and VAT

Hi, I am trying to buy a Laptop for my mother, who has her own
business, so shouldn't have to pay VAT. Have I got that right? Can
anyone here speak from experience - how does the process usually work,
do I give my VAT number when ordering or isn't it that straightforward?

Many thanks in advance,
Michael

Michael wrote:
Hi, I am trying to buy a Laptop for my mother, who has her own
business, so shouldn't have to pay VAT. Have I got that right? Can
anyone here speak from experience - how does the process usually work,
do I give my VAT number when ordering or isn't it that straightforward?

In a nutshell, No, you still pay VAT to the vendor.

What happens next depends on whether you a VAT-registered business or not.

If you are a VAT registered business, ask your accountant[1], because the rules
of VAT are lovecraftian horror with many tentacles.

If the business then re-sells the item in question, it then _charge_ VAT.
The VAT difference (between the buying and selling price) is what you then have
to pass on to the revenue.

If the business uses the item for its own use, then depending on the rules, you
make a VAT claim in your annual accounts, i.e. via your accountant[1].

If you are not a VAT registered business, what happens next is NOTHING.

Jim

[1] Ia! Ia! Cthulhu ftagn! Mglui naflftagn Dagon e Y'ha-nthlei [2]
[2] As a techie, I'm properly scared of accountants.

Michael wrote:
Hi, I am trying to buy a Laptop for my mother, who has her own
business, so shouldn't have to pay VAT. Have I got that right?

It's only true if your mother's business is VAT registered.

However you still pay the VAT when you buy the laptop and then claim
it back (or in reality offset it against your VAT liability) when your
mother's business does its VAT return.

Can
anyone here speak from experience - how does the process usually work,
do I give my VAT number when ordering or isn't it that straightforward?

VAT returns are (usually) done quarterly, or for some small businesses
annually (but you pay VAT 'on account' through the year in that case).

The VAT registered business adds VAT to everything it sells (and
produces proper VAT invoices if requested) and collects proper VAT
invoices from suppliers for everything it buys. Then at the end of
the quarter it does a VAT return:-


Total Sales 1000
Output VAT 175 (VAT on sales, assuming 17.5%)

Total Purchases 600
Input VAT 105 (VAT on purchases)


Amount to send to HMC&E or whatever they're called now is:-
(Output VAT) - (Input VAT), i.e 70.

--
Chris Green

"Michael" wrote in message
ups.com...
Hi, I am trying to buy a Laptop for my mother, who has her own
business, so shouldn't have to pay VAT. Have I got that right? Can
anyone here speak from experience - how does the process usually work,
do I give my VAT number when ordering or isn't it that straightforward?

Many thanks in advance,
Michael


No, you just pay normal. When your mother does her VAT return she pays the
taxman all the VAT collected
less all the VAT paid out. So every extra expense reduces what she pays. If
the amount comes to a negative
figure, common in first VAT periods, you get a refund.

That's how you get it back. Nothing to do with the retailer. Same with
income tax relief which can also be
claimed. The spend reduces profit, so reduces income tax.

If possible get the invoice made out in your mother's name or trading name.
Although if she has the same
surname and/or address, it should be ok.

Don't put your real email in Usenet postings. Unethical companies write
programs which load up newsgroups
looking for real addresses and then spam them. Although gmail is quite good.

David Atherton wrote:

"Michael" wrote in message
ups.com...
Hi, I am trying to buy a Laptop for my mother, who has her own
business, so shouldn't have to pay VAT. Have I got that right? Can
anyone here speak from experience - how does the process usually work,
do I give my VAT number when ordering or isn't it that straightforward?

Many thanks in advance,

Are you back on Usenet post Dabs?

Ric

"ric" wrote in message
oups.com...

David Atherton wrote:

"Michael" wrote in message
ups.com...
Hi, I am trying to buy a Laptop for my mother, who has her own
business, so shouldn't have to pay VAT. Have I got that right? Can
anyone here speak from experience - how does the process usually work,
do I give my VAT number when ordering or isn't it that straightforward?

Many thanks in advance,

Are you back on Usenet post Dabs?

Ric


Well he has got a bit of time on his hands now.

Isn't that right Dave ;-)