Anyone can help?
I am vat registered in UK
bullion delaer is vat register
customer (public) is not?
bought scrap gold from customer 5000 pounds and sold to bullion dealer with 10 percent margin 5500 pounds
bullion dealer pay 5500 showing self billing invoice
customer public did not paid vat and bullion dealer created self billing invoice and paid only 5500 pounds
question is vat is payable or not?
i do not have to show in vat return and show in year end accounts ? i do not know
the below boxes
Box 1 - VAT due in this period on sales and other outputs.......Seems not here
Box 2 - VAT due in this period on acquisitions from other EC........No
Box 4 - VAT reclaimed in this period on purchases and other inputs....... Not here
Box 5
Box 6 - Total value of sales and all other inputs excluding any VAT........... 5500 i do not know is it correct to show in the box or not
Box 7 - Total value of purchases and all other inputs excluding any VAT .........5000? i don not know is it correct to show in box or not
Box 8 - Total value of all supplies to other EC memeber states .......
Box 9 - Total value of all acquisitions from EC Member States
Replies (9)
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Get proper paid-for advice now.
It sounds like you've already made mistakes on a comparatively simple transaction. You are likely to have made many others and not realised it. Get proper help before you dig yourself a hole you can't get out of.
(sigh)
You (points)
must (?)
speak to (puppet hand)
an accountant (finger pressing imaginary calculator on palm of hand)
this (points to question)
is not (shake head)
the right place to ask (ok, I give up)
There is a VAT special scheme for such transactions (including self-billing by the bullion dealer).
This is a technical area about which you need proper advice. Ask your accountant.
If you do not have an accountant, get one.
If you really think it best not to get an accountant then at least get the relevant leaflets from HMRC and study them carefully!
David
For investment gold (probably not scrap gold) physically located in the UK, Para 3.1 of VAT Gold Notice 701/21 requires that anyone who sells £5k+ of such gold should comply with the VAT reporting obligations at section 3 therein .
https://www.gov.uk/government/publications/vat-notice-70121-gold/vat-not...
The relevant legislation is SI 1995/2518 regulation 31A (2)(f).
Assuming no such report is made within the required 28 days of the sale, then under s69A VATA 1994 the penalty is up to 17.5% of the value of the gold; however, should HMRC raise a penalty, you could potentially argue that as a reasonable excuse the above Gold Notice is framed in terms of traders (per the wording of section 3.2 as “PERSONS WHO TRADE IN INVESTMENT GOLD – FORM OF NOTIFICATION”) , so you did not think that it should apply to one-off (non-trading) sales:
http://www.legislation.gov.uk/ukpga/1994/23/section/69A
http://www.hmrc.gov.uk/manuals/vcpmanual/vcp11713.htm
Assuming it's not investment gold, then there is no VAT exemption.
You don't have to worry about VAT on gold if you bought it from somebody that's not VAT registered. It's a new rule that was introduced in yesterday's budget. HMRC will update their publications in due course.
is there vat paid back to businesses on scrap gold, so if I gave scrap gold into a refiner or bullion dealer is there vat credit paid back ?