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July 13, 2020
Question

Recording purchases when not VAT registered

  • July 13, 2020
  • 1 reply
  • 0 views

I am a Sole Trader and not VAT registered.

I purchase materials on behalf of customers from VAT registered companies.

When invoicing customers, I charge the customer the cost of the materials including the VAT paid.

I, therefore, assume that VAT is not reclaimable from HMRC.

Thus, when recording the purchases do I need to be recording the VAT paid?

Do I record VAT on stock assets? Do I record VAT on items such as stationery and fuel?

Hoping someone can unboggle my mind!

 

 

1 reply

October 5, 2020

Hi

 

If you are not VAT registered then you should not record the VAT on anything, as you cannot charge it and cannot claim it. So all your costs will be the vat inclusive figure. Just like an individual buying something in a shop - you are not interested in the VAT only the total cost you pay.