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Posted 17 days ago by Fab1
If any establishment charges VAT on goods and services are they required to indicate whether VAT has been applied and at what rate? Is there a standard format for showing whether VAT has been applied? Also if the good/service is VAT is exempt are they required to indicate that said good/services are exempt of VAT? What recourse does a customer have if they have been charged VAT on good/services that are exempt?
Posted 12 days ago by HMRC Admin 20 Response
Hi,
If a VAT registered business supplies goods or services to another VAT registered business then there is a legal requirement to raise a VAT invoice .
Please see below:
VAT guide (VAT Notice 700)
There is no requirement to show if a supply of goods or services is exempt from VAT.
I would contact the seller to confirm the level of VAT they are charging to avoid any confusion.
Thank you.
Posted 12 days ago by Fab1
Thank you. Re: Also if the good/service is VAT is exempt are they required to indicate that said good/services are exempt of VAT I find that surprising and troubling. I'm currently dealing with burial/cremation purchases and some businesses either misunderstand what is and is not VAT exempt which leaves the customer in an invidious position.
Posted 8 days ago by HMRC Admin 21 Response
Hi,
There iks no requirement to indicate on an invoice that a supply of goods or services is exempt from VAT.
A VAT invoice only has to be raised to another VAT registered business and only where the supply is being charged at the 5% or 20% rate of VAT.
16. VAT invoices.
Thank you.

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