I intend to make a small IT hardware purchase, the best price (significantly so) is direct from the manufacturers online retail presence which happens to be registered in Ireland.
At the checkout you can enter a VAT no. which reduces the total by a factor of 1.2, i.e. net of 20% VAT (which is curious because Ireland VAT rate is 23%, but never mind about that...). The VAT content is still owed but is now MyCo's responsibility to account for this via the VAT return in boxes 2 & 9, correct?
One good reason to use FRS is because it simplifies the admin. Having to account for purchase VAT is a complication I could do without. So, is there a rule that it must be done like this, rather than simply paying the consumer price inc. VAT ? TBH, even if there is such a rule it would seem a rule begging to bebrokenignored.
Which got me thinking... isn't this an opportunity for wide-scale consumer VAT fraud? Joe Public discovers that by pretending to be a business and entering a valid GB VAT no. online they can get ~20% discount. The site does validate the VAT no. but I am doubtful that this is could be any more sophisticated than calculating/validating the check digits.
At the checkout you can enter a VAT no. which reduces the total by a factor of 1.2, i.e. net of 20% VAT (which is curious because Ireland VAT rate is 23%, but never mind about that...). The VAT content is still owed but is now MyCo's responsibility to account for this via the VAT return in boxes 2 & 9, correct?
One good reason to use FRS is because it simplifies the admin. Having to account for purchase VAT is a complication I could do without. So, is there a rule that it must be done like this, rather than simply paying the consumer price inc. VAT ? TBH, even if there is such a rule it would seem a rule begging to be
Which got me thinking... isn't this an opportunity for wide-scale consumer VAT fraud? Joe Public discovers that by pretending to be a business and entering a valid GB VAT no. online they can get ~20% discount. The site does validate the VAT no. but I am doubtful that this is could be any more sophisticated than calculating/validating the check digits.
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