A client bought some goods from a VAT registered business via Amazon the goods purchased were new and listed as such but the business issued an invoice stating zero VAT and citing the Global Accounting Scheme (VAT Notice 718) as the reason VAT had not been charged. As far as I am aware only second hand goods are permissible under the scheme. Any advise would be appreciated.
Thanks, Jason
Replies (5)
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There is definitely a discrepancy in the information provided to your client!
If the vendor has supplied goods under Global Accounting, they must be 'used,' not 'new.' I agree that only used goods are eligible under GA.
The choice is: do you rely on the Amazon listing? or the seller invoice? Which is more accurate?
Margin schemes are unlikely to be advantageous where the trader's customer or supplier are themselves VAT registered.
I get this a lot with vans.