Jay Cooke

You cannot reclaim foreign VAT that has been charged on an invoice from an overseas supplier. You can only ever reclaim UK VAT that has been charged by a supplier who has a UK VAT number, on your UK VAT return. You should therefore record the invoice as a gross amount, no VAT, seeing as the VAT can't be reclaimed on the UK VAT return. The 10% IVA could be reclaimed by making a VAT refund claim directly to the Italian tax office.https://www.gov.uk/government/publications/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021/check-how-to-claim-a-refund-of-vat-paid-in-an-eu-member-state If you think how VAT works, UK supplier raises invoice to UK customer, say £100 + £20 VAT. The customer pays £120 to supplier and supplier pays £20 VAT to HMRC and keeps £100...customer is out of pocket by £20 and HMRC are up by £20, the supplier is neutral as they just charged it and collected it. If the customer can reclaim the VAT back from HMRC, then the supplier, HMRC and customer are all neutral, there is no VAT loss anywhere and this is how VAT generally works. If the supplier is in Italy and charges Italian VAT to the UK customer, the Italian supplier doesn't pay this VAT over to HMRC, the supplier pays it over to the Italian taxman. If then a UK customer reclaims this Italian VAT from HMRC, HMRC are now out of pocket by £10, the Italian government are up £10 and there is no mechanism for the Italians to pass that £10 over to HMRC, this then creates a VAT loss for HMRC and if HMRC were to discover this during a VAT inspection, HMRC would assess the UK business for reclaiming VAT they are not entitled to reclaim (foreign VAT).

Hi HMRC Admin 17 A member of the public has noted that a VAT registered trader is potentially abusing the VAT zero rating legislation, could you not make a call to a colleague in the VAT team and ask them to enquire into the business? The idea of charging a customer for installation which never takes place (by the supplier) and then crediting the customer with the cost of installation back via a bank credit (no invoice) at least seem contrived. If one supplier is doing it, then give it a few months and several more will be doing it guaranteed.

If you buy materials yourself these will always be standard rated. The zero rate applies to "supply + install" contracts, so if you engage a contractor to supply the materials and to fit those materials then the whole supply can be zero rated. If you buy the materials yourself from a retailer/wholesaler and engage a fitter to install the materials, the fitting/labour can be zero rated but not the materials, the materials on their own will be standard rated. You cannot reclaim VAT on your self-assessment. https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086 and see section 2.3

No Question only information .

There is nothing in the legislation that refers to GPS. Section 4.2 of this guidance states that you can reclaim 50% of the VAT relating to the rental cost of a lease car. You cannot reclaim VAT on the car if you purchase it outright (own the car). it does not matter what job role the employee has, if their contract with you is to supply them a lease car, then the lease cr rental is 50% recoverable. You can reclaim 100% of any car repairs, maintenance or servicing. https://www.gov.uk/guidance/vat-on-motoring-expenses-notice-70064#input-tax-on-leased-cars With regard fuel for the lease cars, HMRC internal manuals at this link should cover most of your queries. https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit55400

Have you called the deregistration and reinstatement team on 0300 322 7871? (rather than the general VAT helpline). Is your government gateway showing as still being VAT registered or does it show as now deregistered/VAT number cancelled? Did you cancel your registration via your gateway or did you write to HMRC (hardcopy letter in the post)? I'm a tax agent (Accountant) and I agree this is frustrating and this is not a complicated error to resolve, it should not take months of frustration and the general VAT helpline should have been able to resolve this. Issue may be that HMRC are almost never happy to receive requests like this (reinstatement of VAT number, changing bank details, etc) over the telephone, even after passing security checks, this sort of thing probably warrants something in writing, but you should have been advised to do that when you first called to raise the problem. HMRC Admin, is there a way to get this resolved for the taxpayer?

Have a read of this HMRC guidance https://www.gov.uk/government/publications/statement-of-practice-4-1983/statement-of-practice-4-1983 You need to be careful around the VAT registered business reclaiming VAT on costs that are not wholly and exclusively used by the VAT registered business, for example if two business share the same premises...then the VAT registered business cannot reclaim all the VAT on rent or service charges or on utilities as clearly some of these costs are enjoyed by the other business. Remember the right to reclaim VAT is that the incurred VAT is used in making taxable supplies, that is not the case if the VAT registered business buys a laptop and reclaims the VAT but then uses the laptop in the unregistered business. So whilst there may not be disaggregation in the truest sense, HMRC could still enquire as to the VAT reclaimed by the VAT registered business.