How do I know if a supplier has paid VAT to the Revenue?

S

Starbuck

Registered User
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I was recently invoiced for professional fees by a certain individual who did some work for me. His original quote was a flat fee - but he added VAT at 21% onto his final invoice.

As far as I'm concerned his original quote was VAT inclusive. He disputes that now, and unfortunately it appears I'll have to shell out.

What concerns me is that I can't tell if he has pocketed the extra 21%, or actually paid it over to the taxman.

Is there any way I can verify he has actually declared this fee and passed on the VAT?
 
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Re: VAT scam by professional?

Has he quoted his VAT number on his invoice - to tell you the truth the fact he issued an invoice more than likely means he's going to hand over the money to the tax man.
 
Re: VAT scam by professional?

First thing you should do is ask him for a copy of his VAT registration Certificate, to make sure he is registered. Saying that professional fees are given on an ex VAT basis.
 
Re: VAT scam by professional?

DavyJones -- fair play to you. I have been looking for this Web page for years
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

Thanks for all those comments. I'll look for that VAT No.
Still doesn't mean he'll definitely pay it over though, does it?
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

If they've issued you with a VAT invoice, and you paid by cheque, they will undoubtately declare it.
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

Wait up - I was under the impression that if you are quoted a total price by someone, that's the price you pay. Full stop. They are responsible for payment of the VAT to Revenue, not you. If they attempt to add "VAT" later they are breaking the original agreement/contract. Have you checked this with Citizens Information Bureau?

Had a similar issue with a quarry owner a good few years ago. He backed down eventualy.
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

Starbuck said:
What concerns me is that I can't tell if he has pocketed the extra 21%, or actually paid it over to the taxman.
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No more than you could anyone with whom you have monetary dealings. , the garage, the publican , the newspaper shop etc.etc.etc. and this goes for Income Tax as well as VAT. One can only assume that most taxpayers, especially ones giving VAT invoices, are tax compliant. If they're not, then Revenue will, at some point, catch up with them....they always do.
 
Re: VAT scam by professional?

mercman said:
First thing you should do is ask him for a copy of his VAT registration Certificate, to make sure he is registered.
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There is actually no such document as a "VAT registration Certificate". A letter is issued to a taxpayer when they first become VAT-registered. However it would be stretching things quite a bit to call this a "VAT registration Certificate". As with all tax correspondence, most people who are registered for more than a year or two would have this letter in storage and as such would not have it readily available for inspection by third parties, even if they wanted to. As a self-employed professional myself I would most certainly refuse to provide this letter or a copy thereof to a customer or other third party. The inclusion of a VAT registration number on each individual invoice is the appropriate means as specified in law for the notification & confirmation of VAT registration to invoicees.
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

ubiquitous - you are correct. The Revenue do not issue a certificate. However, they do issue a letter stating the number. Any person that is in doubt is legally entitled to request sight of the letter, regardless of when it was issued.
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

mercman said:
However, they do issue a letter stating the number. Any person that is in doubt is legally entitled to request sight of the letter, regardless of when it was issued.
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Really? Can you cite a source to confirm this?
 
are you sure mercman? that would mean that i could walk into any shop, pub, garage and request to see letter? My understanding is that if an invoice or receipt shows a vat number that is enough? Whether the supplier passes the vat over to the revenue is an issue between Revenue and the supplier. As for quoting a fee - generally in business fees and purchases are quoted excluding vat expecially if the purchaser is registered for vat.
 
Re: Professional quoted flat rate but added 21%VAT to the final bill.

mercman said:
ubiquitous - you are correct. The Revenue do not issue a certificate. However, they do issue a letter stating the number. Any person that is in doubt is legally entitled to request sight of the letter, regardless of when it was issued.
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You can just check the vat number using the site listed above , seeing the letter adds nothing..
 
If the supplier was aware that the op was an individual, and not a trader, then any price quoted should include VAT. As an example, (last time I checked) vodafone quote prices for personal customers as vat inclusive and business customers are excluding vat.
 
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