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Where Taxpayers and Advisers Meet

A Tearoom not Registered for VAT but £166K turnover ??

KH27H
Posts: 1
Joined: Mon Feb 19, 2018 4:04 pm

A Tearoom not Registered for VAT but £166K turnover ??

Postby KH27H » Mon Feb 19, 2018 4:13 pm

I currently own a tearoom A3 use and account for VAT using the 12.5% VAT Accounting scheme. I am registered as an unlicensed café and restaurant according to the categories at Companies House. I am looking to purchase tearoom number 2 and have found one. However, they are reporting a turnover of £166K but they informed me they were not VAT registered (as I asked for a receipt when I purchased a coffee and breakfast eating in as a secret shopper !!). Am I missing something here ?? How can they have a turnover publicly displayed on a "for Sale" commercial business site but not pay VAT ?? Are there different classifications of business that could apply to this tearoom to prevent paying VAT?? Can anybody help. Thanks in anticipation.

wamstax
Posts: 1861
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: A Tearoom not Registered for VAT but £166K turnover ??

Postby wamstax » Mon Feb 19, 2018 5:19 pm

If they are selling goods or providing a service with turnover of £166k then they would have to be registered for VAT. Even if they were selling “cold exempt food” to the public the fact they have a turnover in excess of the vat limit would require registration.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 3067
Joined: Sat Feb 01, 2014 3:26 pm

Re: A Tearoom not Registered for VAT but £166K turnover ??

Postby bd6759 » Mon Feb 19, 2018 5:30 pm

Why haven't you asked them why they are not registered? No-one here knows the real reason.

Bill, I think you mean zero rated, not exempt.

wamstax
Posts: 1861
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: A Tearoom not Registered for VAT but £166K turnover ??

Postby wamstax » Mon Feb 19, 2018 5:35 pm

Oops yes bd that’s why I’m not a VAT specialist
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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