Flat Rate VAT and import

[Nat2321302]

Hi, would appreciate if someone can share some thoughts

I have a client who is Flat rate VAT buying beers from EU countries. My understanding is that the VAT on EU acquisition must be shown on box 2 but no corrs input vat can be claimed for him since he is a flat rate VAT payer.

If he register for normal scheme he will pay lot more VAT as he does not have much VAT expenses.

What is the best way around this? He also has another Ltd company separate which is normal VAT registered business.

Can anyone share some thought the best approach for this scenario please

Thanks

[les35]

The FRS is not a good idea!
Firstly, if there is an associated business, then he is ineligible to joint the scheme.
Secondly, when purchasing goods within the EU, he has to account for Acquisition Tax, but cannot claim the input tax unless he meets the Capital Items test.
Best to avoid the FRS. It may even be that he should never have joined the scheme; and should go back and re-calculate his Returns.