Correct VAT application for Non VAT registered individuals?

Hi, I hope someone can help as this has been confusing me for quite some time.

When receiving goods or services from a Non VAT registered individual or organisation, would this be recorded as no VAT through the accounts or as zero rated? I have checked many forums and there does not seem to be any consistency with the treatment of such transactions.
I work for a film company and we regularly contract actors who are not VAT registered and have been recording them as out of scope of VAT as they do not charge this on their supplies. Would this be correct? I'm a little worried that these may need to be recorded as zero rated as some people have mentioned on Accounting Web's forums. As both treatments still give a 0% VAT treatment and do not affect the VAT due, does it not matter how these are treated as long as there is consistency?

Any advice would be much appreciated!



  • Amyjay
    Amyjay Registered Posts: 4
    Also - if no VAT receipt can be supplied would this too fall under the no VAT category or zero rated? This specifically applies to say credit card receipts that may not have the VAT analysis included or where only the card payment slip is received.
Privacy Policy