VAT Registration Pitfalls and Loopholes
Discussion
So it’s pretty inevitable I’ll have to register for VAT. The size of current job dictates that.
I’ve a few questions that I’m pondering about, so if anyone has any recommendations about who I could speak to on this would be greatly appreciated. I find recommendations alway best.
Briefly,
a) The project is zero rated VAT. Do I need to receive payment from the client direct, or can the client pay a designer who passes monies to me?
b) once I enter for registration, I can claim back all VAT monies spent on materials/services back, or do I have to wait until I’m actually issued a VAT number?
I understand there’s potentially a reasonable delay from registration application to issuing of VAT number , but can’t hold the job off until number issued.
It’s a bit awkward as I wouldn’t hit the threshold until some way in, but equally worth voluntarily registering earlier to claim anything back allowable, and as it’s zero rated, means nothing to pay.
c) I understand the construction industry and VAT is quite complex, and part of the criteria for zero rating is if the work is carried out alongside a new build, or property that has full planning permission. If the property is habitable, occupied or has a completion certificate, it can’t be zero rated, is there a grey area whereby work has started, the client moves in whilst work related to that schedule is still ongoing - does that mean VAT is retrospectively added, or just any new works going forward?
TIA
I’ve a few questions that I’m pondering about, so if anyone has any recommendations about who I could speak to on this would be greatly appreciated. I find recommendations alway best.
Briefly,
a) The project is zero rated VAT. Do I need to receive payment from the client direct, or can the client pay a designer who passes monies to me?
b) once I enter for registration, I can claim back all VAT monies spent on materials/services back, or do I have to wait until I’m actually issued a VAT number?
I understand there’s potentially a reasonable delay from registration application to issuing of VAT number , but can’t hold the job off until number issued.
It’s a bit awkward as I wouldn’t hit the threshold until some way in, but equally worth voluntarily registering earlier to claim anything back allowable, and as it’s zero rated, means nothing to pay.
c) I understand the construction industry and VAT is quite complex, and part of the criteria for zero rating is if the work is carried out alongside a new build, or property that has full planning permission. If the property is habitable, occupied or has a completion certificate, it can’t be zero rated, is there a grey area whereby work has started, the client moves in whilst work related to that schedule is still ongoing - does that mean VAT is retrospectively added, or just any new works going forward?
TIA
MustangGT said:
CIS and domestic reverse charge rules are horribly complex, I hope your account fully understands them.
I tried to navigate my way through reading up on domestic reverse charging and is complex indeed. Why so complicated? Is it designed to try and trip you up? All you want to do is work…deanrufleg said:
MustangGT said:
CIS and domestic reverse charge rules are horribly complex, I hope your account fully understands them.
I tried to navigate my way through reading up on domestic reverse charging and is complex indeed. Why so complicated? Is it designed to try and trip you up? All you want to do is work…I have a simple solution:
Do away with all the schemes and have all VAT registered entities doing VAT at the same time periods, be that monthly, or quarterly.
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