Hurricane
Well-known member
Yep - fully understand your point about VAT being reclaimed.
But I thought that HMRC aren't interested in getting involved or even have the data to confirm one way or the other.
And, I don't believe that HMRC will provide a VAT paid certificate.
I also think that you have to have the right kind of company and have sufficient turnover to be registered for VAT in the first place.
Even then, I thought it was then very difficult to just put any transaction through your company's VAT returns.
And one big transaction would stand out like a sore thumb.
The result is that genuine companies like brokers can claim VAT on their purchases and pay the VAT on their sales without any extra bureaucracy.
The true reason for the "Value" "Added" "Tax" - i.e. they are being taxed on their added value.
It would be very difficult for an individual to set himself up, registering for VAT, specifically to enable him to reclaim any VAT without charging it on the eventual sale.
I suppose that a charter company could be set up with this purpose but, again, that would stand out like a sore thumb.
As I say, I am no expert though.
But I thought that HMRC aren't interested in getting involved or even have the data to confirm one way or the other.
And, I don't believe that HMRC will provide a VAT paid certificate.
I also think that you have to have the right kind of company and have sufficient turnover to be registered for VAT in the first place.
Even then, I thought it was then very difficult to just put any transaction through your company's VAT returns.
And one big transaction would stand out like a sore thumb.
The result is that genuine companies like brokers can claim VAT on their purchases and pay the VAT on their sales without any extra bureaucracy.
The true reason for the "Value" "Added" "Tax" - i.e. they are being taxed on their added value.
It would be very difficult for an individual to set himself up, registering for VAT, specifically to enable him to reclaim any VAT without charging it on the eventual sale.
I suppose that a charter company could be set up with this purpose but, again, that would stand out like a sore thumb.
As I say, I am no expert though.