I have a new client about to set up who will import goods from China and sell on to customers only in the USA. As I understand it all their sales will be zero-rated and they will have input VAT from their imports and other UK costs that they will be able to reclaim. When registering for VAT we'll therefore need to tick the box stating that input VAT will regularly exceed output VAT. Can anyone advise what the consequences of this will be?
Many thanks
Replies (6)
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The effect of ticking that box is that you'll then be offered the option of making monthly VAT Returns. That's the consequence of ticking that box.
Depends what you are buying and selling I suspect- computer chips might whet their appetite.
Make sure the client has proper export evidence, to ensure HMRC make those regular repayments.
HMRC usually enquire into the first repayment return so make sure you have your ducks in order.
Had one last week.