VAT return on Lidl/Aldi products?

[Gosh14]

As Accountancy topics not found on the forum, there is the place for my question (probably).

Does anybody have an experience of returning VAT off Lidl or Aldi products? Sometimes they have a good deals, like 9" grinders for EUR39.99 at the moment. So can I bring that through accounts as a business equipment and claim VAT back? Despite the fact it`s written "Not for business use" in a product description.

 

[brightspark]

As Accountancy topics not found on the forum, there is the place for my question (probably).

Does anybody have an experience of returning VAT off Lidl or Aldi products? Sometimes they have a good deals, like 9" grinders for EUR39.99 at the moment. So can I bring that through accounts as a business equipment and claim VAT back? Despite the fact it`s written "Not for business use" in a product description.

yes u can claim the vat back for use in your buisness .they are for diy use meaning the guarantee only covers that purpose not used in buisness all day and every day

 

[rtbcomp]

There must be a VAT number on the invoice or till receipt.

 

[Gosh14]

There must be a VAT number on the invoice or till receipt.

It is one on each receipt. Just probably should make separate transactions on business use stuff and german sausages.

yes u can claim the vat back for use in your buisness .they are for diy use meaning the guarantee only covers that purpose not used in buisness all day and every day

Exactly the same way of thinking I do. But did anyone have the experience of seeing the returns on his account from Revenue in real?

 

[Shox Dr]

If it's liable for VAT and the receipt has a VAT Number on it, and it's for a business. Then you can claim it.

But did anyone have the experience of seeing the returns on his account from Revenue in real?

Don't understand the question, you fill in your return, (well you MUST sign it.)
The VAT man takes that as word.

If he doesn't, he doesn't amend it. You get a visit

 

[BillJ]

As the original poster is in the Irish Republic, does advice based on the UK VAT system still apply?

 

[rtbcomp]

VAT is a European tax so it will be the same for all EU countries.

 

[BillJ]

But is it administered in the same way for all EU members? It is administered locally for each member state. As I understand it, it is the details the OP is having problems with.

 

[rtbcomp]

On this level it will the same for everyone, individual countries can adjust rates within limits.

The OP just wants to know if he can claim VAT on stuff bought from Aldi/Lidl for business use.

 

[mike os]

For the UK anything bought for business use with VAT applicable at the time of purchase, the vat can be reclaimed if you are vat registered.

If you dispose of the item you must charge VAT on the price you dispose of it for at the applicable rate.

This is irregardless of the item, place of purchase or intended use, the only proviso is it must be for use by the business that purchased it. If the item is bought within the EU you may be VAT exempt at source if you provide a vat number at the time of purchase, or you can reclaim via the UK system.

To reclaim you must have a full VAT receipt clearly showing the sellers VAT number.

I dont know if other member states manage VAT in the same way, best check with your VAT office or accountant.

 

[rtbcomp]

........

If you dispose of the item you must charge VAT on the price you dispose of it for at the applicable rate.

..........

Strictly speaking you must account for VAT, you don't have to charge it, you're quite at liberty to pay the VAT yourself.

For example if you sell something for £100 you a) may add £20 VAT, pay £20 to HMRC and keep £100 or b) pay HMRC £16.60 and keep £83.33.

 

[mike os]

Strictly speaking you must account for VAT, you don't have to charge it, you're quite at liberty to pay the VAT yourself.

For example if you sell something for £100 you a) may add £20 VAT, pay £20 to HMRC and keep £100 or b) pay HMRC £16.60 and keep £83.33.

correct.....i think quite why you woud pay the vat if selling i really dont know tho...

 

[rtbcomp]

You have to quote VAT-inclusive prices to the public, and £100 is a nice round figure, or you may be flogging stuff off cheap to clear. Like Machine Mart's so-called VAT-Free days, all they are doing is selling at pre-VAT prices and paying the VAT themselves.

Which is nice if you're VAT registered, becuase you still claim the VAT back!

I used to do it if I sold used items, or just did a quick job, I'd say "Gives us a fiver" but I still paid the VAT on it.

 

[Justme]

I used to do it if I sold used items, or just did a quick job, I'd say "Gives us a fiver" but I still paid the VAT on it.

Some used items have different rules if you are buying & selling used stuff.

I think you only charge the VAT on the profit you are making as there could have been no VAT on it when purchased.

 

[rtbcomp]

Some used items have different rules if you are buying & selling used stuff.

I think there are special rules for motor vehicles

I think you only charge the VAT on the profit you are making as there could have been no VAT on it when purchased.

I think VAT has to be accounted for on the selling price, irrespective of the VAT status on purchase.

Used stuff sold at auction on behalf of a VAT registered vendor attracts VAT on the hammer price.

 

[Shox Dr]

I think there are special rules for motor vehicles



I think VAT has to be accounted for on the selling price, irrespective of the VAT status on purchase.

Used stuff sold at auction on behalf of a VAT registered vendor attracts VAT on the hammer price.

Remember VAT is a Luxury Tax. ie Food is not VATable but sweets are. News papers are VAT free but some magazines attract VAT. Kids clothes are VAT free, quite why adult clothes attract VAT I don't know

As for Auctions the auction house *should* only charge VAT on items that have had the VAT claimed back, as VAT is an end users TAX *If* VAT has been charged at source but never claimed then they should not charge. As we all know it's different in real life.

 

[Justme]

I was thinking more for stuff like furniture & antiques.

Its called the VAT margin scheme. You only charge on your profit & not the total price.

VAT margin schemes for second-hand goods, art, antiques etc
Normally you charge VAT on your sales, and reclaim VAT on your purchases. However, if you sell second-hand goods, works of art, antiques or collectibles, there may have been no VAT for you to reclaim when you bought them. You may be able to use a VAT margin scheme. This enables you to account for VAT only on the difference between the price you paid for an item and the price at which you sell it - your margin. You won't pay any VAT if you don't make a profit on a deal. You can still use standard VAT accounting for other sales and purchases such as overheads.

'Eligible goods' include the following:
Second-hand goods. Goods that can still be used, or which could be used after repair. They include most goods that are commonly called 'second hand' and include motor cars - but not vehicles sold for scrap or parts.

source link

 

[rtbcomp]

I was thinking more for stuff like furniture & antiques.

Its called the VAT margin scheme. You only charge on your profit & not the total price.





source link

Nice one - Plenty of admin overhead there then!

 

[rtbcomp]

Remember VAT is a Luxury Tax. .......

Try telling that to a non-VAT registered self-employed tradesman when he buys his tools.

The only reason that VAT isn't charged on food & kids clothes is that it looks good at election time.

 

[Shox Dr]

Don't shoot the messenger

As an Ex VAT registered person, I know all too well