VAT question

[BigBen]

I imported a load of stuff, paid VAT and duty on it planning on selling it in the UK. Due to a change in circumstance it looks like I may have to export (to a non-EU country) a significant amount of it). Can I claim the VAT paid back on this portion of the stock ?

My company is not VAT registered

Ben

[mystomachehurts]

BigBen said:

I imported a load of stuff, paid VAT and duty on it planning on selling it in the UK. Due to a change in circumstance it looks like I may have to export (to a non-EU country) a significant amount of it). Can I claim the VAT paid back on this portion of the stock ?

My company is not VAT registered

Ben

That'll be a no I'm afraid.

How ever, were you to VAT register your Company, you might be able to do so retrospectively so long as it is not left too long - a proper accountant will give you the definitive answer here.

[Eric Mc]

If you registered for VAT you should be able to claim back the VAT on ALL the purchase.

Obviously, registering for VAT is an imporatant point in the history of a business and should only be proceeded with

a) when it becomes compulsory or

b) if not yet compulsory, that it is appropriate for your business.

Registering on the basis of claiming VAT back on one transaction would not be advisable - unless it is beneficial for the business as a whole.

[thewave]

As a note, if you're importing goods and currently paying VAT, then shipping the goods overseas, it may well be worth you registering for VAT even if you're below the threshold.

[BigBen]

thewave said:

As a note, if you're importing goods and currently paying VAT, then shipping the goods overseas, it may well be worth you registering for VAT even if you're below the threshold.

This is what I am thinking as it is a fairly significant bit of cash.

Thanks all for answers will speak to my accountant this week

Cheers

Ben