HMRC Admin 21 Response
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Re:VAT on General Expenses recharged to a client
Hi CraigF
.We can't dictate to a company what value they charge as a supply.
We can only dictate that the VAT is charged on their supply but the value of this supply is their own decision.
Thank you.
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Re:Flat rate scheme and EU Sales
Hi BB71
It depends on the nature of the supplies.
If you are exporting goods then this will form part of your Flat Rate turnover.
If you provide services to the EU which are Outside the Scope Of VAT then this will not form part of the Flt Rate turnover.
Please see the guidance below:
6. Determining your flat rate turnover
Thank you. -
Re:Digital Product Sales - what to include on VAT return
Hi Jax
As Etsy are based overseas then your supply would be Outside The Scope of VAT and recorded in box 6 as a net sale.
If you raise an invoice to Etsy for multiple supplies then it could be recorded on one invoice and then recorded on the VAT return during the period the invoice/supply is made.
Thank you. -
Re:As NETP, should I include sale via Amazon.uk in my FRS calculation?
Hi Andy
Your understanding of the first scenario is correct.
In the second scenario ,this means that because the goods are stored in the UK by Amazon there is a supply being made by yourself to Amazon and even though this deemed supply is at the Zero rate of VAT it has to be treated within the Flat Rate Scheme.
I wouldn't be able to help in tems of differentiating between the supplies you make which would be and would not be calculated on the Flat Rate Scheme.
I would remind you though to take a close look at the Flat Rate Scheme to see if it benefits your company.
The Flat Rate Scheme disallows you from recovering the VAT on goods for resale and so any import VAT which you incur before the goods are stored in the wharehouse would be irrecoverable.
Thank you -
Re:Reseller of licenses (IT) outside of the UK
Hi confusedaccountant1989
The rules which determine if and where VAT is to be charged is the Place of Supply Rules.
If you are the customer of company A and you are in the UK then company A is making a supply within the UK and so would need to charge VAT.
Please see the information below:
6. The place of supply rules for services
Thank you. -
Re:VAT Cash Accounting Scheme
Hi Patrycja
The cash accounting scheme can be used by companies based outside the UK.
Please see the guidance below for the eligibility conditions for using the scheme:
2. Basics of cash accounting
Thank you. -
Re:What could be included in the “Paid” cost under the Margin Scheme?
Hi Andy
There is specific guidance for importing goods from overseas and whether you can use the margin scheme for the onward sale.
Please see the guidance below:
Check if you can use a VAT margin scheme if you import from, or export to, countries outside the UK
Thank you. -
Re:Requesting Import VAT & duty repayment on defective goods
Hi John
Please contact our International Trade Team as below:
Imports and exports: general enquiries
Thank you. -
Re:Charging VAT when selling services to UK businesses from Sweden
Hi holly_198
If you are supplying consultancy services from overseas to businesses in the UK then these would be accounted for by the business customer under the reverse charge procedure.
Please see the guidance below:
5. Reverse charge
However the important aspect to confirm is where you 'belong' for VAT purposes.
If you 'belong in the UK' then you will be making a UK supply and this will be taxable in the UK.
Please see the guidance below to determine this:
9. Non-established-taxable-persons (NETPs) — basic information
Thank you. -
Re:VAT claimed on business mileage (electric cars)
Hi Nessa_26
Hi, Please see the the guidance below which explains the mileage allowance for electric cars:
Advisory fuel rates
Please see the reqirements for VAT invoices in relation to claiming VAT as input tax.
Is there a reson why the employees can't obtain a VAT invoice if they are paying for a car charge?
Thank you.