v.a.t

[Jbird]

I have recently completed some granite work tops for a regular customer for which I didn`t invoice him for. Previously he had done a job for me and the two sums where of equal value. the regular customer included the v.at value in his bill. we are both happy with this one off arrangement, however, I have not ever seen his invoice and I am wondering , should I be looking for the v.a.t element back? I am not v.a.t regt.

Thanks in advance

[ummmm]

No then. You have to be VAT registered to be able to claim it back.

[BenDToy]

Hi JBird, Although you are a bit hazy on the details, you definitely cannot claim back VAT if you are not registered, as ummmm says. However I just wanted to point out that on the surface I think that you got a far better deal than the other guy. It goes like this. You paid him, say, �115 - this makes the calculation easy. He had to pay the VAT he collected from you (�15) to the taxman. You on the the other hand, collected �115 from him and kept the lot. (Note that this doesn't take into account that he may have claimed back VAT on any costs he may have had, but this should have been much less than the �15 he gave the taxman.) I guess this will be clear as mud, but just ask if you need further explanation!!

[Jbird]

Thanks for the replys. let me put it this way. If person charged you for some work etc. and then charged you say �115.00 inc vat and you never saw the invoice and they baged it all. then what? the fact is that they should have charcged me �100.00.
I have no proof of the facts from his side.

Thanks all help is appreciatd

[ummmm]

Can you just not ask him for the invoice 'for your records'. It makes no difference though. If he charged you VAT it's down to him to pay it over to HMRC. If he doesn't pay it over that's still down to him. You paid the agreed amount inc VAT. If he is VAT registered he has to charge VAT.

[buildersmate]

I don't agree with ummms analysis.
If the value (that you agreed between you) of the job he did for you included the price + VAT and he hasn't put that job through his books, he hasn't had to pay HMRC the VAT on it. So he is pocketing the 15%.
Equally you definitely can't have an invoice for it since to do so legally obliges him to charge the VAT and put it through his books - and as others have said, you can't claim back the VAT back.
He needs to provide you with another VAT-free service for the value of the VAT on the first job for you to have had a fair exchange. He cannot make it up to you in mere cash - not without charging VAT on it.

[BenDToy]

...and don't forget that you (Jbird) will also then have to put it through your books and so pay tax on it!