Final VAT Return question

[john1233]

Hi there

I have a question about my final VAT return. I own some stock purchased from EU supplier which was sent to me on zero rate (B2B). How do I account for this on my final return?

Do I have to assume its sell value at the time of return?

Any help would be appreciated.

[john1233]

Hi there

I have a question about my final VAT return. I own some stock purchased from EU supplier which was sent to me on zero rate (B2B). How do I account for this on my final return?

Do I have to assume its sell value at the time of return?

Any help would be appreciated.

Forgot to mention that the Value of this stock is around £11k

[Trevor S]

I'm assuming that at the time you bought the stock, you were VAT registered. Therefore although your supplier wouldn't have shown VAT on their invoice, you would have calculated acquisition VAT. You would have paid this to HMRC on box 2 of your return, and reclaimed it in box 4.

Provided that you've done the acquisition VAT accounting, these items now just form part of your stock. I don't think that the fact they were originally sourced from elsewhere in the EU has any significance to the treatment on deregistration. HMRC guidance is here: https://www.gov.uk/government/publications/vat-notice-70011-cancelling-your-registration/vat-notice-70011-cancelling-your-registration#section-7
My understanding of this is that you need to account for VAT on all the items listed in section 7.2, in the same way that you would if you were selling them, if that VAT would exceed £1,000 in total. The valuation basis is covered by section 7.8. If the stock is valued at £11k, then you would appear to be over the limit.