RE: FN-FORUM Re: Vat on Quotes

date posted 31st January 2003 14:15

> Kathy - like yourself I'm not VAT registered & it is a
> business client.
> Presumably I still make reference to the fact that it is
> excl. VAT, and then
> charge it onto the invoice when the time comes?
> Paul.

(I'm not Kathy but...)

NO! VAT relates to your status as a VAT-Registered individual (or
company etc) and has nothing to do with your customers or their VAT
status.

If *you're* not VAT registered you MUST NOT make any reference to VAT.
Since you're not registered with HMCustoms & Excise (www.hmce.gov.uk
iirc) then you can neither charge VAT to your customers (output VAT) nor
can you reclaim VAT on your VATable expenses (input VAT).

Once you *are* VAT registered (you must register if you expect your
annual turnover to be above a certain level but you can volunteer at any
time iirc), ONLY THEN can you start making reference to VAT. Upon
registering you get a VAT number which *MUST* be on all your invoices
(along with a few other requirements such as a separate indication of
the amount of VAT in the invoice total).

Check out the HMC&E website. Their helpline is very good (posted the
number yesterday but from memory it's 0845 090 1000), but tbh you might
be best to talk to an accountant!

Cameron