Help with VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone please help as i am confused about VAT, if a company is not VAT registered what has to be done with VAT on purchases, does a non VAT registered company have to charge VAT on services it provides, i think i need to study more on VAT anyone for a study buddy

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Help with VAT

    <BR>VAT isn't as complicated as it looks.<BR><BR>If you are not VAT registered you do not charge VAT on sales and therefore cannot claim it back on purchases. <BR><BR>If you are VAT registered - either out of choice or because sales have gone over £60,000 a year - then you MUST pay over 17.5% on your sales and you can claim back any VAT suffered on purchases.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Help with VAT

    Hi<BR><BR>If you are not VAT registered and therfore cannot reclaim VAT on purchases, you simple consider any VAT on invoices as part of the expense of the goods /services. Some companies may have a seperate expense account for VAT to keep it seperate, but at the end of the day it still becomes an expense.<BR><BR>Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Thanks for your help

    Thank you Lilibet and NeilH<BR>Both of your answers have really helped in my understanding of VAT if not VAT registered.<BR><BR>Thanks Again<BR><BR>Rob

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