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Where Taxpayers and Advisers Meet

VAT Compliance

kentish
Posts: 1
Joined: Wed Nov 02, 2016 7:17 pm

VAT Compliance

Postby kentish » Wed Nov 02, 2016 7:29 pm

Hello, I am a business seller selling ink cartridges online most of them are old or used I pay my tax every year Recently I received a letter from Indv and Small Business Compliance asking me to register as a VAT business, I am not an experienced business person I don't know fully who or what vat is for nor that I had to register and pay 20% of my sales since I received a letter I read a lot about VAT unfortunately I went over the threshold for over a year which I didn't know what's a threshold and now I have to pay 20 % vat for this period plus fines. I have two questions :

-Can I use a flat scheme at this point or I am not allowed to?

-I can't find all my purchase receipts and most of the sellers that I bought from them the goods are not vat registered in fact most of them are not businesses they are just people who got rid of their junk, I have only few receipts to claim my input tax is there anything that I can do?
I would really appreciate any other advice about this matter
Thank you very much for your help.

pawncob
Posts: 4322
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: VAT Compliance

Postby pawncob » Thu Nov 03, 2016 5:41 pm

You don't qualify for the flat rate scheme. See 3.6.
https://www.gov.uk/government/publicati ... s#section3

You don't need receipts, just evidence that you paid for the goods.

I suggest you contact a local accountant to deal with this, as VAT for the layman (and many practitioners) is a nightmare.
With a pinch of salt take what I say, but don't exceed your RDA


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