Help with vat
Im not currently vat registered but will soon hit the threshold to become vat registered. Ive been exempt until the changes obviously made recently. Can i claim back all previous vat charged once ive become VAT registered or is it from that point only? (I hadnt been paying it so i mean since the changes have been made)
Base amount -£0.96
Tax -£0.19
Digital service fees -£0.07
Tax -£0.1
Fba Fulfilment fees -£2.59
Tax -£0.52
What can i actually claim back out of these? Can you claim back all the "tax", how do i go about claiming it back once im registered if so? How do i collect invoices? Any help would be appreciated. Trying to get my head around it.
Thanks
4 replies
Seller_QuM1AZgzfU9x4
You weren't exempt from VAT prior to the changes (assuming you mean the change in August). You just weren't registered for VAT and potentially asked Amazon to stop charging some VAT since they weren't billing from the UK at that point.
No you can't claim back all VAT prior to registration, but yes you can claim back some that you paid on goods and services. There are rules on how far you can go back and exactly what you can and cannot claim which you'll either need to understand or pay an accountant.
As for once you are registered, you can claim back all VAT on fees and ads. You (or your accountant) needs to file electronically every 3 months with HMRC. Plus of course you'll likely have VAT costs on purchases etc as well as VAT you will have collected on sales which is then offset by your VAT expenses.
Seller_mS10UjVYuuGor
HMRC are not the ogres some people make them out to be, they simply have a job to do and would rather work with someone prepared to interact than the many who refuse to interact.
VAT registration becomes compulsory for UK resident business owners at £90K turnover, the date you register before that point is up to you. From the point of registration you pay VAT on all your sales revenue and reclaim VAT on all your inputs that charge VAT. The date is arbitrary and often defined by you but you can't necessarily have it both ways. Any difference is stock value pre/post VAT registration is a conversation between your accountant/you and HMRC.
