RajD
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VAT Cockup

VAT Cockup

Hey all,

Bit confused on this. A company I am a director of runs an event every year. This year we got some help from an events "professional" who ended up trying to defraud us and embezzle the money we gave them to pay suppliers. Anyway, they wrote the T&C's for website which my colleague put up. Even though we are not vat registered and did not add vat to the ticket price paid when sold through Paypal, the t&c's said "Vat inclusive". Once we found out about her, I went over all of her work and saw this in the t&c's and removed it. 

We are now paying the venue directly and will not be claiming the vat back, as we didn't charge any and are not registered. 

What is my situation?

We intend to report her and her business partners for fraud but can they come back on us about the vat in the t+c's?

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25th Feb 2016 08:41

Events company

If your Ts & Cs mention VAT, that does not, in my view, create a 'debt to the Crown.' The legal provision in VAT Act 1994, Sch 11, para 5 refers only to VAT shown on an invoice.

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25th Feb 2016 09:39

Agree

Your situation, as regards VAT, is no situation at all, you're not registered for VAT, haven't charged VAT and are not liable to return VAT. If there was any come back from an over enthusiastic inspector then I would point them in the direction of the company against whom you've already commenced legal action for their shoddy work.

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By RajD
09th Mar 2016 17:43

Thank you both for this. Put my mind at ease. 

Now I can pursue the events company knowing that there is nothing they can throw at me. 

 

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