Using Vat No.

S

Slates

Registered User
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If you use a vat. number to buy goods in NI without being charged the vat, is it up to the consumer to notify the revenue of will the supplier let them know
 
Slates said:
If you use a vat. number to buy goods in NI without being charged the vat, is it up to the consumer to notify the revenue of will the supplier let them know
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It's a transaction between two VAT-registered entities in separate EU states, so it should be 0% VAT rated. There is a space to enter such the total of such transactions per VAT period on the VAT3 form, which must be done by both consumer and supplier.

Invoices must be issued with correct VAT numbers including country code.
These can be validated here:
http://ec.europa.eu/taxation_customs/vies/vieshome.do
 
Eblanoid said:
It's a transaction between two VAT-registered entities in separate EU states, so it should be 0% VAT rated. There is a space to enter such the total of such transactions per VAT period on the VAT3 form, which must be done by both consumer and supplier.

Invoices must be issued with correct VAT numbers including country code.
These can be validated here:
http://ec.europa.eu/taxation_customs/vies/vieshome.do
Click to expand...

Eblanoid, What does tha mean in non-Tax talk, do I have to fill out the vat3 form and if I don't what are the consequences ?
 
Slates said:
Eblanoid, What does tha mean in non-Tax talk, do I have to fill out the vat3 form and if I don't what are the consequences ?
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Your question suggests to me that you are not a trader registered for VAT. If that is so, then you are not entitled to "use" a VAT number. It's fraudulent, and there are mechanisms that make it possible for such fraud to be detected.
 
Padraigb said:
Your question suggests to me that you are not a trader registered for VAT. If that is so, then you are not entitled to "use" a VAT number. It's fraudulent, and there are mechanisms that make it possible for such fraud to be detected.
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Good stuff, what are they ?
 
Padraigb said:
Do you want advice on how to reduce the danger of being caught evading tax?

The best way is to pay your taxes.
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No, I just want to know how the system works! why did you jump to such a negative conclusion ?
 
Why don't you just ask your accountant? He/she will have to sign off the accounts anyway.

I think the terminology "Using VAT No." may be ringing a few alarm bells about whether this is truly valid intra-EU business.

SSE
 
Slates said:
No, I just want to know how the system works! why did you jump to such a negative conclusion ?
Click to expand...

I have a VAT3 on my desk. It makes it clear how to proceed -- it's set out on the back of the form. So you have no need to ask us here. You will also need to fill in VIES forms, but once you fill in the VAT3, the system kicks in, and all you need to do is tell the truth.
 
The goods you are purchasing must also relate to your business.

E.G. If you are a computer service company and you are buying 3 beds from a furniture company, it will not be permitted and if seen in an audit either of you or the company that suppled you, then VAT & penalties will be applied.
 
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