VAT reclaim - moving abroad
Discussion
You can reclaim the VAT via what is called the Retail Export Scheme (the retailer will be the person refunding your VAT). Ask the retailer you bought it from to supply you with this, and get it stamped by either Customs at port of export, or your agent can do it for you. Your shipping agent can also supply you with a C88 form which can I think can still be used to reclaim VAT as long as you have the supporting documentation (VAT invoices).
If 6you plan on reclaiming VAT through the business, then you must be using the asset as a business asset. If, at any point the asset ceases to be a business asset and is transferred to you personally then the VAT man would want his VAT back.
If you buy something PERSONALLY in the UK but are a NON-EU national you can ask the retailer to forego the VAT element at the poinbt of purchase. Alternatively, you can reclaim the VAT at your port of exit directly from the HMRC office.
If you buy something PERSONALLY in the UK but are a NON-EU national you can ask the retailer to forego the VAT element at the poinbt of purchase. Alternatively, you can reclaim the VAT at your port of exit directly from the HMRC office.
Eric Mc said:
Only if it is bona fide business stock. If it is for personal use then VAT cannot be reclaimed.
as it doesn't amount to a great deal I won't bother anyway BUT if the business purchased the items and then sold them again surely this could not be deemed for personal use after all the goods have been sold?
If the business bought items for business purposes and legitimately claimed VAT at the time of purchase, then the business MUST declare Output VAT on the resale of these goods.
If the VAT registered trader deregisters for whatever reasons - cessation of trade or falling below the turnover registration limits or even MOVING ABROAD, then if there is any unsold stock on which Input VAT was claimed at the point of purchase which is still held at the date of deregistration, the nusiness MUST declare the Output VAT on deregistering. It is deemed to be a Self Supply for VAT purposes.
If the VAT registered trader deregisters for whatever reasons - cessation of trade or falling below the turnover registration limits or even MOVING ABROAD, then if there is any unsold stock on which Input VAT was claimed at the point of purchase which is still held at the date of deregistration, the nusiness MUST declare the Output VAT on deregistering. It is deemed to be a Self Supply for VAT purposes.
Eric Mc said:
If the business bought items for business purposes and legitimately claimed VAT at the time of purchase, then the business MUST declare Output VAT on the resale of these goods.
If the VAT registered trader deregisters for whatever reasons - cessation of trade or falling below the turnover registration limits or even MOVING ABROAD, then if there is any unsold stock on which Input VAT was claimed at the point of purchase which is still held at the date of deregistration, the nusiness MUST declare the Output VAT on deregistering. It is deemed to be a Self Supply for VAT purposes.
If the VAT registered trader deregisters for whatever reasons - cessation of trade or falling below the turnover registration limits or even MOVING ABROAD, then if there is any unsold stock on which Input VAT was claimed at the point of purchase which is still held at the date of deregistration, the nusiness MUST declare the Output VAT on deregistering. It is deemed to be a Self Supply for VAT purposes.
There's a de minimis limit where if the VAT at stake is < £1,000 then you may not need to account for it on deregistration (see at 6.7, and VAT Act 94, sch 4):
PN700/11
Sadly, if the VAT's above this figure, or you don't fall into this exception, you'll probably need to account for output VAT on the lot. Hope this helps.
ETS - having just re-read your initial post, it looks a bit ropey to me, I would think you'd have to think about why, in the normal course of business, your company bought a load of furniture just before it ceased to trade..?
Edited by stumartin on Tuesday 26th December 16:13
I tend not to get into too much nitty gritty quoting of section numbers or specific tax references here on PH.
My aim is usually to point out to PHers the various principles at work.
I too thought that the facts pointed out in the original question did smack of an element of non-business useage in the transaction or proposed transaction.
It is very pertinent that VAT regulations contain various de minimis levels yet the Proceeds of Crime Act makes great pains to emphasise that there are no de minimis levels wjhen one is talking about fraud - including VAT fraud.
My aim is usually to point out to PHers the various principles at work.
I too thought that the facts pointed out in the original question did smack of an element of non-business useage in the transaction or proposed transaction.
It is very pertinent that VAT regulations contain various de minimis levels yet the Proceeds of Crime Act makes great pains to emphasise that there are no de minimis levels wjhen one is talking about fraud - including VAT fraud.
Pertinent also to reassure that I am not offering my informal thoughts for the purposes of any fraud, and would not do so if I thought that was the intention of the original poster. I assume his intentions are only honourable, and as ever, that he will pay to consult a specialist if he needs professional advice and a definitive opinion
I only reference the leg because I don't wish to reference myself, and because I'm naturally pedantic. Also, I was of the view that the de minimis levels could, if they apply in a given situation, be of great significance to a small business where the assets on winding up could be <£6k in value.
Happy Boxing Day Eric! S
Its always easy to leave out details! The company will continue to trade.
The company was simply going to sell some items to a person (me) who is living outside of the EU and is therefore not required to be charged Vat.
Its more of a logistics idea (sending all items in one container) as this is easier than having itmes shipped directly from source less vat.
As always there seems to be more than one way of looking at things.
The company was simply going to sell some items to a person (me) who is living outside of the EU and is therefore not required to be charged Vat.
Its more of a logistics idea (sending all items in one container) as this is easier than having itmes shipped directly from source less vat.
As always there seems to be more than one way of looking at things.
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