Refunds

[MrJuice]

I sell physical goods. Is there a time limit for me issuing a refund?

I sold an item to a friend in 2011. He wants out. Can I issue him a refund or must I buy it back from him? Amount he receives is the same. Only if I refund, it's effectively reversing the VAT invoice issued at the time. If I buy back, it is different VAT treatment because he's Joe Bloggs, not a VAT registered business

Thank you!

[Doofus]

There's no time limit, as far as I'm aware. But friend or not, a 100% refund for something he bought more than five years ago?!

I know I wouldn't.

[Simpo Two]

It would mean he's had five years use of it for free.