OT: VAT receipts

I believe there are rules about controlling VAT receipts. Things like duplicates.

You also need to think through what happens if the person needs a receipt to reclaim expenses which will likely be submitted to a company and disappear into their accounts system. And another which acts a proof of purchase for guarantee purposes.

Registered traders can reclaim the VAT that they suffer whe they purchase something. This is done when they submit their VAT Returns. They can only make claims provided the items claimed for are supported by a tax invoice.

So if I don't ask for a VAT receipt at the garage, my sale is not counted for VAT purposes at the garage. If no-one asks for a VAT receipti, they cannot recover any input VAT. That cannot possibly be right.

The input VAT at ?The Garage? is for stuff they buy, rather than stuff they sell.

I presume they pay VAT n the fuel, they will certainly pay it on the crisps , toilet rolls, hag rags, etc that they buy.

That is what they can claim back the VAT on.

Whether or not a purchaser ass for a VAT receipt, they will have to pass on the VAT the customer pays to the taxman.

Exactly, so this is not the reason for the existence of VAT receipts, which is what I was trying to point out.

AIUI a VAT registered person/business is only *required* to supply a VAT invoice when dealing with another VAT registered person/business, not to Joe Public.

So it seems, but why? And does lack of requirement amount to a prohibition on issuing a combined VAT / non-VAT receipt to save paper and unnecessary dialogue?

Yes, and (annoyingly) people like PlusNet, EE, and Three don't supply VAT Invoices on any of their 'consumer' accounts, but do on their 'business' accounts.

I thought an organisation was legally required to issue a VAT receipt on request but it is far from clear:

My Energy Company quoted my rates without including VAT, but charge including it......I understood all consumer prices should be quoted including VAT.

That was my understanding if they are quoting to a retail consumer but if they are quoting to a business I think it is perfectly legitimate to show prices without VAT.

I am heading to a trade decorator centre, so I shall find out very soon.

In article , Scott writes

It isn't.

In article , Scott writes

Any business that is vat registered must charge vat at the appropriate rat on all sales (Some things are exempt, some things are zero rated)) and any customer vat registered or not is entitled to a receipt showing the Vat element. Non Vat invoices are issued to show the cost and to act as an acknowledgement of payment prior to formal completion of the transaction, usually delivery. To avoid duplicate claims of relief they are marked accordingly.

No. It's none of their business if you are vat rated. If they are charging vat they must show it.

Correct. To ensure level playing field OFGEM insist that all quotes are shown inclusive of VAT. HMRC insist that all invoices show vat. Something to watch out for when comparing energy prices with what you are currently paying.

If they sell retail then they must make it clear if their displayed prices are without VAT. Screwfix for example give you the option on line to show price with or price without vat.

But that receipt might not be a VAT *invoice* if the customer is not themselves VAT registered.

Even that is complicated. If you make an insurance claim, and the insurance company says "Buy a replacement and send the receipt on to us", you are in a position which is neither wholly making a purchase for a VAT-registered company, nor wholly without VAT issues.

There are also hugely complicated areas where some public organisations (bi ts of the NHS) buy things when they have no way, at the time of agreeing to buy, of knowing whether or not they can reclaim any or all the VAT.

Full compliance. All the items are priced in two colours, with and without VAT.