VAT Registration
Dazza
Registered Posts: 4 New contributor 🐸
A company that has not registered for VAT should not charge VAT.
If a business has not reached the VAT threshold (which is currently £68,000) and has charged VAT in error what happens to the so called VAT charged?
Does the VAT amount charged get credited to the annual turnover which will reach the threshold during the year sooner? (thus legally ensuring that the Company registers for VAT sooner)?
Small businesses are permitted to trade for a period without charging VAT until they reach the threshold during a 12 month period, I was just wondering what do small businesses do if they have charged VAT in error before they have registered eg. a new retail outlet which has charged consumers that will not reclaim the VAT?
Interested in any advice based on experience with HMCE. Thanks in advance
If a business has not reached the VAT threshold (which is currently £68,000) and has charged VAT in error what happens to the so called VAT charged?
Does the VAT amount charged get credited to the annual turnover which will reach the threshold during the year sooner? (thus legally ensuring that the Company registers for VAT sooner)?
Small businesses are permitted to trade for a period without charging VAT until they reach the threshold during a 12 month period, I was just wondering what do small businesses do if they have charged VAT in error before they have registered eg. a new retail outlet which has charged consumers that will not reclaim the VAT?
Interested in any advice based on experience with HMCE. Thanks in advance
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Comments
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They should advise their customers that VAT was charged in error and refund them. Not to do so would be obtaining funds by deception.0
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VAT Registration
Thank you for the reply, appreciated!0
