When does something attract VAT

[davemac250]

Some help please.....

I've just finished having a project done on a 90's motorbike and farmed out the jobs I was unable to do.

The company I used have been excellent but I've some questions over the VAT added to their invoice and would rather know where I stand before going to them.

I've tried HMRC but they would only talk to the company...

We used a load of second hand parts, many imported from the US to complete the bill.

Most coming from eBay.

I was charged VAT at 20% on all the parts they sourced.

I can't see how that works especially on the imported items from the US that I paid the import taxes on as part of the part bill. There was also a sizeable VAT bill for parts from Netherlands.

Parts came to just under £10,000 so it's not a small bill and any recoup I can make would be great.

I don't suspect any malice or skullduggery, more likely them not understanding the VAT rules if they are in the wrong.

Thanks.

[Ean218]

Did you import the parts or did they?

If they did and then supplied them to you, and they are VAT registered, then they have to charge you VAT for parts supplied in the UK, it is irrelevant where they got them from.

If you imported them why are they charging you anything?

[2 sMoKiN bArReLs]

davemac250 said:

I was charged VAT at 20% on all the parts they sourced.

That's your key sentence. If they are VAT registered they will charge you vat on goods supplied irrespective of where they came from. (Unless the goods themselves are zero rated or exempt, which spare parts aren't)

It's as simple as that really.

[davemac250]

It went a bit wonky when I imported some parts, which they had to send off to be altered and ended up buying new parts with a trade in offer.

Set of flatslide carbs that were wrongly listed but ended up being worth more than I paid for them as they were rarer than the specs I needed.

Ok, that helps. I'll buy the bits on the next bike that they currently have. I'll save myself a load of money....