This VAT can be recovered as input tax on the same VAT Return, subject to the normal rules for reclaiming input tax. Example: 10 cm measured on your 1/35 scale model is 350 cm in real life (1/1). the finance company, not to the customer. You notify the VAT Registration Service if: If you had a place of business or an agent in both countries at the time you were registered, you must give notification of any major change in the functions carried out at either address. A registered person supplies standard-rated services to a client for a basic fee of £80. Remember, when a tax point is created by the issue of a VAT invoice, you must account for VAT in your return for the period covering that tax point. For example, these may all be non-business activities: An activity that’s carried out mainly as a hobby, such as stamp collecting, is not a business. This example shows how the normal rules and the special provisions would apply for a supply of goods affected by an increase in rate of tax in the following circumstances: Unless you’ve decided, under paragraph 14.2.2 of this notice, not to follow the 14 day rule, the date of issue of the VAT invoice is the actual tax point. For more information, see How to make a freedom of information (FOI) request. EPSY 622-700 Jasmine Rodriguez 1/15/2018 Week 1 Reading Application #1 (Chapters 1 & 2) 1. You do not have to check that a customer is VAT registered before issuing a VAT invoice. This might happen because of a change in the law or in its interpretation. For more information see sections 20 and 21 of this notice. the removal of goods to Northern Ireland from an EU member state, in the member state from which the goods were removed, calculate the tax that is due in the normal way, need to work out the tax value of each supply in order, the packaging is more than is normal and necessary, you make an additional charge with a supply of goods for their container, to make sure that it is safely returned - and the charge is to be refunded on its safe return, this additional charge is not subject to VAT - but, if the charge has been raised to cover the loan, hire or use of the container, then this charge would be subject to VAT at the standard rate, make an arrangement to deliver or post them for an extra charge, the extra charge is for the supply of a separate delivery service, the charge made to you by Royal Mail may be exempt, but your charge to your customer is taxable even if it’s exactly equal to the charge made to you by Royal Mail, the terms of your agreement with your customer for the supply of the goods require you to deliver or post them to the customer. Set of 16 pcs 105 mm SFLAK barrels used in C/37 mount for German ships As an auctioneer, you may also be asked to arrange sales of goods in the satisfaction of a debt (for example, under a court order). Some supplies made by or to charities are zero-rated, some are reduced-rated, some are standard-rated and some exempt. The simplified invoice must include: If you make retail sales, you should give your customer a VAT invoice if asked for one. These can include selling or closing your business, or when you stop making taxable supplies. cannot use the rules set out in this section to work out whether you have to account for any tax on a supply which spans your date of registration. You should normally calculate this by reference to the price, excluding VAT, which a customer would have to pay for the supply if money was the only consideration. you receive a VAT invoice on which tax has been charged at the old rate, can treat as input tax only the actual amount of VAT shown, the amount of tax is not separately shown (for example, if you receive a less detailed VAT invoice - see, should work out your input tax by applying the VAT fraction which was appropriate at the tax point, you receive continuous supplies of services invoiced to cover a period up to one year ahead of the supply, Multiply (c) by the standard rate of VAT: £40 × 20% = £8, can reclaim the input tax provisionally, subject to the normal rules, should make an adjustment by making the same calculation using your total figures for the year, 31 March, 30 April or 31 May depending on the tax periods that you have been allocated, a guide to all the main VAT rules and procedures, references to more specialised publications, rates of VAT chargeable on particular goods, requests for publications or forms where they’re available in a printed format, requests for duplicate returns for businesses that still make paper return submissions, the purpose of visits that you’ll receive from VAT officers and what you can expect, what HMRC can do in cases of misunderstanding, misdirection or departmental error, your rights as a taxpayer and how to complain, discuss with you the various aspects of your business, give an indication of the length of the visit, advise you of overpayments as well as underpayments, tell you that you have the right to a review of their decision by an officer not previously involved in the matter or to appeal to an independent tribunal - if you opt for a review you can still appeal to the tribunal after the review has finished if you’re unhappy with the outcome, advising HMRC early of the reasons for any significant changes in the tax or duties declared by you - you should do this by writing to the, keeping your records and payments up to date, providing HMRC with any information and explanations requested, asking if you’re unsure of any matter connected with the tax - HMRC will not normally have time to look at all aspects of your records and business, so you cannot assume that you are accounting for the tax or duty correctly on everything just because no errors are found, helping HMRC to understand your business and records, replying to enquiries within the specified time, quoting your VAT number when you contact HMRC, were prevented from recovering VAT at the proper time, that are not specifically exempted or zero-rated, made by someone who is not a taxable person, made outside the UK and the Isle of Man (see, not made in the course or furtherance of business, transfer them under an agreement such as a hire-purchase agreement - but not if you transfer such an agreement, provide water or any form of power, heat, refrigeration or ventilation but not if you hire out equipment which does this - that is a supply of services (see, supply a major interest in land, broadly speaking, the freehold, or in Scotland the dominium utile, or a lease exceeding 21 years (see, transfer goods permanently out of the business for your private use, lend goods to someone for use outside your business, produce goods from someone else’s materials, use goods owned by the business outside the business, agree, for a consideration, to refrain from doing something, agree to grant, assign or surrender a right for a consideration, you must account for VAT on all the taxable supplies you make by way of business, and you can treat as input tax VAT charged on goods and services which you get for your business (see, if you also carry out non-business activities, it could affect the amount of VAT you can treat as input tax - VAT charged on goods and services which you do not get for your business is not input tax and you cannot reclaim it, the way in which self-employed people carrying on any trade, vocation or profession, as well as companies, earn an income, the provision of membership benefits by clubs, associations and similar bodies in return for a subscription or other consideration, the activities of clubs and other recreational bodies, some of the activities of charities and non-profit making bodies, maintaining museums, parks or historic sites (unless there’s an admission or other charge), accommodation in hotels and similar establishments in the Isle of Man, including the provision of holiday accommodation and the letting of camping sites, where the VAT rate is 5%, repairs and refurbishments to domestic property situated in the Isle of Man, where the VAT rate is 5%, register for VAT in every EU member state where VAT is due and submit VAT Returns and payments in each of those states, check whether you should register for the Union or Non-Union, Great Britain (England, Scotland and Wales) from anywhere outside the UK, Northern Ireland from outside the UK and EU, receive any service - the place of supply of which is the UK (other than, whether the proposed rate or method is determined by reference to the UK currency market, the frequency with which it’s proposed to update it (forward rates or methods deriving from forward rates are not acceptable), Margin Scheme on second-hand cars and other vehicles, supply them for genuine business purposes as an illustrative or typical example of your product, neither you, nor the intermediary charge for them, you supply them for genuine business purposes and they’re to be given as an illustrative or typical example of your product, the samples remain your property until they’re given to the final customer, any samples which are not used are returned to you or destroyed, perform some other action of benefit to you, are a motor manufacturer, vehicle converter or vehicle dealer and use a motor car in your business (see, put a car on which you claimed input tax (because it was to be used as a taxi, for self-drive hire or giving driving instruction) to some other use, use your own labour to construct a building (other than dwellings or certain other residential buildings) or to increase the floor area of an existing building by 10% or more (see, use outside the business by anyone else, such as an employee, a relative or a friend, you use goods owned by your business for private purposes, you give or lend someone an item from your business, your employees use goods that are assets of your business, at weekends or for holidays, building construction and refurbishment, particularly to domestic premises, which are carried out for the purpose of business but whose use changes over time, goods and services supplied to you in the UK, goods you acquire into Northern Ireland from a taxable person in an EU member state (see, any services supplied in the UK which you receive from abroad, overheads and research and development costs, supplies you make which are liable at the standard rate, reduced rate or the zero rate (see, supplies you make which are outside the scope of UK VAT but which would be taxable supplies if they were made in the UK, supplies of services you make to a person who belongs outside the UK, or supplies of services you make which are directly linked to the export of goods to a place outside the UK - and the making of arrangements for such supplies, provided the supply would have been exempt by virtue of any item of Group 2, or any of items 1 to 8 of Group 5, of, on goods and services not used for your business (see, on a car, including fitted accessories and delivery charges (see, if you’re a developer, on certain articles that are installed in buildings that you sell or lease at the zero rate (see, on purchases that fall within the tour operators margin scheme (see, on goods sold to you under one of the VAT second-hand schemes (see, on assets of a business transferred to you as a going concern (see, the goods were supplied not more than 4 years before the business was registered or was required to be registered, the goods were supplied to the person who is now registered for VAT, the goods were obtained for the business which is now covered by the VAT registration and related to its taxable activities - if the services related partly to taxable activities and partly to other activities, you must work out what proportion of the use of the services related to the taxable activities, you still hold the goods or they have been used to make other goods which you still hold, you compile a stock account of the goods - this must show the quantities of goods and the dates when you obtained them, and if you used any goods to make other goods, or disposed of them after you were registered for VAT, the account must give details, with dates, the services were supplied not more than 6 months before the business was registered or was required to be registered, the services were supplied to the person who is now registered for VAT, the services were received for the purposes of the business which is now covered by the VAT registration and related to its taxable activities - if the services related partly to taxable activities and partly to other activities, you must work out what proportion of the use of the services related to the taxable activities, the services were not related to goods which you disposed of before you were registered (such as repairs to a machine which was sold before registration), you compile an account of these services, this must describe the services and the dates when you received them and, if the services related to goods which you disposed of after you were registered for VAT, the account must give details, with dates, goods or services were obtained or imported by a person who became a member, officer or employee of the body, person was not a taxable person at the time of the supply or importation, computers and items of computer equipment with a VAT exclusive cost of £50,000 or more, land, buildings, civil engineering works and refurbishments with a VAT exclusive cost of £250,000 or more, alterations, extensions and annexes to buildings and engineering works with a VAT exclusive cost of £250,000 or more, ships, boats and other vessels, and aircraft with a VAT exclusive cost of £50,000 or more, a motor car can only be decided once you use the vehicle in your business (for example, as a demonstration model) - the tax point is then the date when, by any positive and recorded action, you transferred the car from the new car sales stock, construction services is when the service is performed (see, the issue of a VAT invoice (where the supply is standard-rated), receipt of all or part of the purchase price before the date of legal completion - but see, for a single supply of services it’s the date the service is completed, or when it’s paid for, if this is earlier, for continuous supplies it’s the end of each periodic payment or billing period, or the date of payment where this is made earlier than the end of the period to which it relates, for continuous supplies that are not subject to payment or billing periods and for which no payment is made beforehand, it’s the end of each calendar year, the general VAT rules that apply to invoicing, the information that a VAT invoice must show, your customer operates self-billing arrangements (see, you make a gift of goods on which VAT is due (see, you’re awaiting VAT invoices from your own suppliers or sub-contractors, an extension of the 14 day limit has already been approved, special accounting arrangements have been approved, where you’re newly registered but have not been notified of your VAT registration number - in this case you must issue the VAT invoice within 30 days from the date of advice of the VAT registration number, a sequential number based on one or more series which uniquely identifies the document, the date of issue of the document (where different to the time of supply), your name, address and VAT registration number - you may issue invoices under a trading name, but you must show the name and address under which you’re registered for VAT somewhere on the document, the name and address of the person to whom the goods or services have been supplied (your customer), a description sufficient to identify the goods or services supplied, for each description, the quantity of the goods or the extent of the services, the rate of VAT, and the amount payable excluding VAT - this can be expressed in any currency, the gross total amount payable, excluding VAT - this can be expressed in any currency, the total amount of VAT chargeable - this must be expressed in sterling, normally provided in a particular business sector, the value of the supply you are making is £250 or less, your name, address and VAT registration number, a description which identifies the goods or services supplied, for each applicable VAT rate, the total amount payable, including VAT, and the VAT rate, £250 or less but the customer requests one, a description of the goods or services supplied, there’s actually been a supply of goods or services, it’s taxable at the standard rate or reduced rate of VAT, the supplier is a taxable person, that’s someone either registered for VAT in the UK, or required to be registered, the supply is made to the person claiming the input tax, the recipient is a taxable person at the time the VAT was incurred, the recipient intends to use the goods or services for business purposes, bank statements clearly showing payment of the supply to the supplier, evidence of how you identified your supplier and your negotiations with them, documents evidencing the transportation, storage or insurance of the goods, any other documents that show a supply took place between you and your supplier, you use a product coding system which clearly identifies the different classes of goods sold - the system should be based on at least 2 digits, possibly 3 if you sell a wide range of products, you must prepare and maintain product code lists and provide all your VAT-registered customers with up to date copies of the lists, you must make sure that the till roll includes all the details required for a full VAT invoice (see, you must keep a copy of till rolls and product code lists for 6 years (unless HMRC has agreed that you need only keep them for a shorter period), are authenticated - that is, signed by the supplier and no normal VAT invoice or self-billed document is issued for the supplies, down to the nearest 0.1p - for example, 86.76p would be rounded down to 86.7p, to the nearest 1p or 0.5p - for example, 86.76p would be rounded up to 87p, 4 digits after the decimal point and then round to 3 digits - for example, if the VAT is £0.0024, it should be rounded to £0.002 (0.2p), the nearest 1p or 0.5p - if you decide to do this, you must not round the VAT down to ‘nil’ on any unit or article that is liable at the standard or reduced rate, for example, if the VAT is £0.0024 it should be rounded to £0.005 (0.5p), the transmission of a structured electronic invoice, for example XML format, through an Electronic Data Interchange service (, deal with goods which are sold to satisfy a debt, wish to claim relief from VAT on a bad debt, the discount terms (which must include, but need not be limited to, the time by which the discounted price must be paid), a statement that the customer can only recover as input tax the VAT paid to the supplier, reflect a genuine mistake or overcharge or an agreed reduction in the value of the supply, and be issued within 14 days of the refund payment being made to the customer, give value to the customer, that is, represent a genuine entitlement (or claim) on the part of the customer for the amount overcharged either to be refunded or offset against the value of future supplies, the name, address and registration number of the supplier, a description which identifies the goods or services for which credit is being claimed or allowed, the quantity and amount for each description, the rate and amount of VAT credited (expressed in sterling), the number and date of the original VAT invoice or invoices relating to the supply - if you cannot do this (for example, because returned goods cannot be identified with a particular invoice), you must be able to satisfy HMRC by other means that you accounted for VAT on the original supply, reflect a genuine mistake or undercharge or an agreed increase in the value of the supply, and be issued within 14 days of the increase being agreed between the supplier and the customer. The corporate body must sign an approval letter before becoming so registered. For more information see Default interest (VAT Notice 700/43). If you need general help with this notice or have another VAT question you should phone our VAT Helpline or make a VAT enquiry online. You may be liable to a civil penalty if you fail to notify any of the changes within the prescribed time limit. If you use goods or services in your business, which the business itself has made or acquired, no VAT is normally due. For more information see Reliefs from VAT for disabled and older people (VAT Notice 701/7). The cost of the supply is determined by reference to the standard-rated costs of making the deemed supply (see paragraph 9.3.2). If you have agreed a particular method with HMRC but consider it to be no longer suitable, you should send HMRC details of your proposed new method by writing to the VAT Written Enquiries Team. If the supply relates to the credit, normally shown as administration, documentation or acceptance fees it will be exempt from VAT. The solicitor uses the information in order to give advice to the client and the recovery of this outlay represents part of the overall value of the solicitor’s supply. The tax is the VAT fraction of the amount and the rest of the amount is the tax value. If they do, there are procedures for handling complaints fairly and speedily. An equitable or legal assignment of the debts to you, whether in whole or in part, is an exempt supply of services to you, and the collection by you of such debts is outside the scope of VAT. From: FOUNDATION TRADING (UK) LTD, BOWMAN STREET, CHESTER, To: A. N. Other Ltd, 57 NORTH ROAD, LONDON, N12 5NA. Remember, if you do have monthly tax periods, you will have to make 12 returns a year instead of 4. The tax point for goods sold under a second-hand scheme is either the date of: But if there’s a change in the tax rate or liability before the goods are removed, you can, if you wish, account for tax at the rate in force when the goods are removed, even if you have already received payment. VAT self-billed invoices must include the reference ‘self billing’. Hire-purchase takes place under an agreement for the sale of goods, periodic payments are made and title passes at the end of the contract unless the customer opts out of a small option to purchase fee, normally payable with the last instalment. Apportionment of tax between business and non-business activities, how to fill in and submit your VAT Return (VAT Notice 700/12), Annex D of the non-statutory clearance service guidance, webinars, e-learning, emails and videos on VAT for businesses and agents, When you can rely on information or advice provided by HMRC, VAT Notice 48: extra statutory concessions, Opting to tax land and buildings (VAT Notice 742A), Relief from VAT on bad debts (VAT Notice 700/18), VAT Notice 701/16: water and sewerage services, Buildings and construction (VAT Notice 708), Place of supply of services (VAT Notice 741A), How VAT affects charities (VAT Notice 701/1), VAT Refund Scheme for charities (VAT Notice 1001), Local authorities and similar bodies (VAT Notice 749). To help us improve GOV.UK, we’d like to know more about your visit today. The biggest size 700/800 from Heli-scale. HMRC’s discretion to allow a claim for input tax can only be used when there’s sufficient evidence to satisfy HMRC that a supply has taken place (see paragraph 16.8.1). If you do not claim the input tax on the VAT Return for the period in which you were first entitled to deduct it, this is an error. Where the phone package allows the business to make a certain quantity of calls for a fixed monthly payment and there’s no separate standing charge, then it must apportion the VAT on the total charge for the package. VAT Notice 708: buildings and construction explains when: VAT Notice 701/7: VAT reliefs for disabled and older people explains that under certain circumstances, goods that are specifically designed to be used by a disabled person, or services specifically aimed at assisting a disabled person, may be zero-rated when supplied to a disabled person for their personal use. You must keep a record of all credits allowed to your customers for supplies that you make. Hobbylinc carries 20 1/700 scale airplanes at discounts up to 45%. This includes selling your business as a going concern to a third party. Sort By: Welcome to the MegaHobby.com model ships and model submarines section. You can get help on completing your VAT Return see the VAT Returns guide. Waterline Model 1/700 scale 10" long: 1:700 Scale, the collector's scale, offers the modeler hundreds of different model ship kits to choose from. There’s a full list of other VAT notices. If your taxable supplies or acquisitions have exceeded the VAT registration threshold but are wholly or mainly zero-rated you can apply to be exempted from registration. You’ll be able to get this information from your online monthly statement, or if you have delayed your customs declaration, you must estimate the amount. It’s possible that other procedures might be necessary but details of these would be given at the time of any change. must not treat the search fee as a disbursement. Depreciation + costs in the relevant period × (private use ÷ total use). If you’re a UK undisclosed agent involved in domestic supplies, the difficulties outlined in this section may not apply and there’s no intention to disturb the current commercial arrangements where you may be invoicing your principals for a separate supply of your own services, as described in paragraph 22.6. section 6 of VAT Notice 700/1: should I be registered for VAT? There are a number of notices which deal with exports. This notice is the main reference guide to VAT, it provides: This notice has been revised to reflect the UK has left the EU and the end of the transition period. But you must remember that all the legal obligations relating to the contents, storage and production of the invoices raised remain with you. For detailed questions or case specific transactions you should write to or email HMRC. This includes any zero-rated supplies you have received. If you receive cross-border supplies of services on which you’re required to account for VAT as a reverse charge, the tax point is as follows: Section 17 gives information on some specific situations. UK, EU and international supplies involving UK undisclosed agents, 25. The checks should be reasonable and proportionate and demonstrate that you’re managing the risks to your business. But, you must reduce the VAT you deduct on stock for resale to account for any stock that is sold before you’re registered. If you receive periodic payments of rent or ground rent, the tax point is the date you receive a payment or the date of issue of a VAT invoice if the supply is standard-rated, whichever happens first. But, if you use cash accounting see paragraph 19.2.1. You can get VAT Notes online. If you know that you’ll be unable to make an accurate return, you should tell HMRC by writing to the VAT Written Enquiries Team as soon as possible. If you supply goods to a VAT-registered customer in an EU member state and the goods are removed from Northern Ireland to an EU country, your supply may be zero-rated provided you meet the appropriate conditions. Electronic invoices are acceptable as evidence for input tax deduction, subject to the normal rules, providing the following can be ensured: You may find it helpful to seek advice by calling the VAT general enquiries helpline before you start to use electronic invoicing. To work out the proportion which is business income: To work out how much of the VAT you have paid you can treat as input tax: This is your provisional input tax for the VAT period. Where a contingent discount is allowed and you adjust the original tax charge, tax should be credited at the rate in force at the time of each supply qualifying for the discount. You should not split the amounts shown on the return between the old and new rules. If for any reason, you have a minus figure to enter in box 1 or box 2, or the figure to be entered in box 4 represents an amount due to HMRC instead of an amount to be reclaimed, then you must insert a minus sign before that figure. show clearly all of the following details, the: name, address and registration number of the supplier, identifying number and date of issue of the VAT invoice or invoices relating to the supply for which there is an increase in price, a description sufficient to identify the goods or services supplied to which the increase in price applies, the amount of the increase in price, excluding VAT, the rate and the amount of VAT debited (expressed in sterling), the records of the taxable supplies you have made, inserting a minus sign before the figure if you use an electronic return (see also, writing it in brackets if you use a paper VAT Return, liquidators: as the company in liquidation remains in being, although controlled by the liquidator, sales are made by the company - the company must account for the tax in the normal way, trustees in bankruptcy: a bankrupt person’s property is vested in the trustee, who then carries on the business in their own right and must account for the tax in the normal way, administrative receivers: an administrative receiver usually acts as the agent of the company, if so, tax is accounted for in the normal way - if the administrative receiver is not the company’s agent, the procedure at, the goods you import are for use in your business, you include your VAT registration number on your customs declaration, credits allowed to your customers for all supplies that you make (see, goods you send out on sale or return, approval or similar terms, showing their respective tax points (see. In certain circumstances where remission or repayment of VAT is not provided for by law, HMRC may allow relief on an extra-statutory basis. You need to make it clear when you’re using minus figures on the return, if for any reason, you have a minus figure to enter in box 1, box 2 or box 3, or the figure to be entered in box 4 represents an amount due to HMRC instead of an amount to be reclaimed, then you must write it in brackets.