Distance Selling Returns & VAT
Discussion
A VAT registered business sells an item by mail order and issues a VAT Invoice.
Within two weeks the purchaser returns the item (unused) under the Distance Selling Regulations.
for a refund.
Assuming that the purchaser is a non-VAT registered consumer, how does the vendor deal with the VAT situation?
And/or if the purchaser is say a VAT registered sole trader (the vendor will not know this), does the purchaser raise a VAT invoice
when they return the item?
Within two weeks the purchaser returns the item (unused) under the Distance Selling Regulations.
for a refund.
Assuming that the purchaser is a non-VAT registered consumer, how does the vendor deal with the VAT situation?
And/or if the purchaser is say a VAT registered sole trader (the vendor will not know this), does the purchaser raise a VAT invoice
when they return the item?
I'll re-phrase the question:
Subject to the right of consumers to return goods for refund under the Consumer Contracts Regulations 2013 and the Consumer Rights Act 2015; how does the vendor deal with the output VAT already charged to the consumer, as that consumer cannot issue a VAT invoice to enable the vendor to then reclaim that VAT as an Input?
Subject to the right of consumers to return goods for refund under the Consumer Contracts Regulations 2013 and the Consumer Rights Act 2015; how does the vendor deal with the output VAT already charged to the consumer, as that consumer cannot issue a VAT invoice to enable the vendor to then reclaim that VAT as an Input?
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