Post by frankiii on Nov 13, 2019 17:51:12 GMT
I was surprised to see FS wasn't/isn't registered for VAT, anyone know why not?
As it stands any business costs they pay have a 20% markup that goes to HMRC.
(How VAT usually works in business to business transactions: Seller quotes £100+VAT (20%=£20), Buyer pays £120, Seller gives £20 to HMRC, Buyer (if VAT registered!) gets £20 from HMRC, End result = a wash. If the Buyer is not VAT registered, they don't get the £20 back from HMRC and end up "losing" £20 to the taxman).
Surely it makes sense to be VAT registered?
As it stands any business costs they pay have a 20% markup that goes to HMRC.
(How VAT usually works in business to business transactions: Seller quotes £100+VAT (20%=£20), Buyer pays £120, Seller gives £20 to HMRC, Buyer (if VAT registered!) gets £20 from HMRC, End result = a wash. If the Buyer is not VAT registered, they don't get the £20 back from HMRC and end up "losing" £20 to the taxman).
Surely it makes sense to be VAT registered?
