Online Vendor - VAT Question
Discussion
I recently purchased a cheap item for a storage pouch (under £10) via Amazon.
No receipt was provided with the delivery, nor available via the Amazon "my account" portal so I contacted the seller & requested one.
They sent a word doc which although displayed a VAT number, showed no VAT element for the sale.
There appears no reason why the item should be exempt so sparked my curiosity.
A quick check of the address returned a haulage company at the exact same address (Ltd, been treading for 65+ years).
Further checking showed the VAT number on the receipt to be invalid (according to the VIES site).
The supplier does not appear to be a LTD Co & seems to have been trading on Amazon for at least a year.
I know there are a few on PH who are involved with online selling - is there a legit explanation for this?
No receipt was provided with the delivery, nor available via the Amazon "my account" portal so I contacted the seller & requested one.
They sent a word doc which although displayed a VAT number, showed no VAT element for the sale.
There appears no reason why the item should be exempt so sparked my curiosity.
A quick check of the address returned a haulage company at the exact same address (Ltd, been treading for 65+ years).
Further checking showed the VAT number on the receipt to be invalid (according to the VIES site).
The supplier does not appear to be a LTD Co & seems to have been trading on Amazon for at least a year.
I know there are a few on PH who are involved with online selling - is there a legit explanation for this?
davepoth said:
Smiler. said:
Understand that.
So why would a trader put a VAT number on the invoice?
I would guess "Because you asked them to". So why would a trader put a VAT number on the invoice?
If they aren't registered for VAT, surely putting one on company paperwork is wrong.
Eric Mc said:
Can you post up the number here so I can see if it is some other type of tax reference?
Was quite clear on the invoice - copy & paste:VAT No: GB108670221
It has 9 digits - which UK VAT numbers do.
Here's some detail on UK VAT numbers as outlined on Wiki -
Country code GB followed by either:
standard: 9 digits (block of 3, block of 4, block of 2 – e.g. GB999 9999 73)
branch traders: 12 digits (as for 9 digits, followed by a block of 3 digits)
government departments: the letters GD then 3 digits from 000 to 499 (e.g. GBGD001)
health authorities: the letters HA then 3 digits from 500 to 999 (e.g. GBHA599)
For the 9-digit scheme, the 2-digit block containing the 8th and 9th digits is always in the range 00 to 96 and is derived from a weighted modulus-97 check number (an identical algorithm is used for the 12-digit scheme, ignoring the extra 3-digit block).[11] The current modulus-97 series ran out during 2010, so a parallel series of numbers was introduced from November 2009 for new registrations, restarting at 100 nnnn nn and following the same format but with the last two digits derived from an alternative algorithm known as "9755".[12] The algorithm is identical to the one for the established series except that 55 is subtracted to give the check number (modulus 97), so the check number is either 55 less than or (if this would be negative) 42 greater than the check number that a VAT number in the established series would have if it were identical in the first seven digits.[13] The details of the 97−55 check algorithm were to be secret[14] but are now available from HMRC on request.[15]
The GD and HA formats may also be formatted as GB888 8xxx yy for EU compatibility, where xxx is the 3-digit number from the short format and yy is the 2-digit modulus-97 check number.[16]
Isle of Man registrations share the 9- and 12-digit formats with the UK, with GB as the country code prefix, but are distinguished by having 00 as the first two digits.[17] Numbers with 01 to 09 in the first two digits are reserved by HM Revenue & Customs for UK non-VAT reference schemes.[13]
Here's some detail on UK VAT numbers as outlined on Wiki -
Country code GB followed by either:
standard: 9 digits (block of 3, block of 4, block of 2 – e.g. GB999 9999 73)
branch traders: 12 digits (as for 9 digits, followed by a block of 3 digits)
government departments: the letters GD then 3 digits from 000 to 499 (e.g. GBGD001)
health authorities: the letters HA then 3 digits from 500 to 999 (e.g. GBHA599)
For the 9-digit scheme, the 2-digit block containing the 8th and 9th digits is always in the range 00 to 96 and is derived from a weighted modulus-97 check number (an identical algorithm is used for the 12-digit scheme, ignoring the extra 3-digit block).[11] The current modulus-97 series ran out during 2010, so a parallel series of numbers was introduced from November 2009 for new registrations, restarting at 100 nnnn nn and following the same format but with the last two digits derived from an alternative algorithm known as "9755".[12] The algorithm is identical to the one for the established series except that 55 is subtracted to give the check number (modulus 97), so the check number is either 55 less than or (if this would be negative) 42 greater than the check number that a VAT number in the established series would have if it were identical in the first seven digits.[13] The details of the 97−55 check algorithm were to be secret[14] but are now available from HMRC on request.[15]
The GD and HA formats may also be formatted as GB888 8xxx yy for EU compatibility, where xxx is the 3-digit number from the short format and yy is the 2-digit modulus-97 check number.[16]
Isle of Man registrations share the 9- and 12-digit formats with the UK, with GB as the country code prefix, but are distinguished by having 00 as the first two digits.[17] Numbers with 01 to 09 in the first two digits are reserved by HM Revenue & Customs for UK non-VAT reference schemes.[13]
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