Vat exempt

[roadrunner]

If a company is Vat exempt does this mean that they can invoice Vat but not receive invoices with Vat?

 

[bazermc]

If a company is Vat exempt does this mean that they can invoice Vat but not receive invoices with Vat?

It means they do not charge VAT on the service they supply as there service is exempt from VAT i.e. dentist, this also means they cannot recover any VAT charged on costs incurred by them for example a computer They computer supplier must still invoice with VAT they just have to take the cost plus VAT.

This seems to be a common missunderstanding that VAT exempt businesses can be invoiced without VAT

 

[roadrunner]

we have a supplier who is also a customer - they received their vat exempt staus since beginning of Jan.
They want us to charge them excluding vat for goods we supply them.
But they are invoicing us incl vat for goods we buy from them - is this correct?
We are not vat exempt ourselves.

 

[mathepac]

we have a supplier who is also a customer - they received their vat exempt staus since beginning of Jan.
They want us to charge them excluding vat for goods we supply them.
But they are invoicing us incl vat for goods we buy from them - is this correct?
We are not vat exempt ourselves.

Yes, their VAT registration will confirm this, check with Revenue. Its not unusual.

They are probably (or meant to be ) exporting the majority of whatever they produce or supply.

 

[Nige]

It sounds as if they are not VAT exempt but have a VAT 13A. If this is the case, you can bill them without VAT provided you have a copy of their VAT 13B cert and quote the VAT 13B number on your invoices.