Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.
There is guidance on change of intention & change of use in the HMRC manuals: https://www.gov.uk/hmrc-internal-manuals/vat-partial-exemption-guidance/...
Precisely how you do this depends on your Partial Exemption status; whether a Special Method is appropriate, etc. I would expect an adjustment when you begin renting, perhaps based on expected taxable and exempt income; and then a final adjustment when the property is sold.
As my colleagues indicated, you should run this past your Accountant first; and then perhaps engage a VAT specialist.
Your thinking is correct. Although in practice one payer pays the VAT, and the other the net amount, from HMRC's point of view, each is a part payment for the supply, so BDR is available on the balance.
The tax point for supplies using Self Billing is the receipt of payment.
Do note those supplies might be treated under the new Reverse Charge scheme, so ask Xero about that too!
Check HMRC guidance in Notice 708, para 3.4: https://www.gov.uk/government/publications/vat-notice-708-buildings-and-...
Are you selling or letting the new house? Sale is zero rated; let is exempt.
The VAT position seems clear; the arrangement seems to relate to where profits are taxed.
There is no 'export,' since the supply is one of services, not goods. As long as the grant of the licence from UK company to Indian company, and back to the school are genuine contracts, there is no problem.
Presumably the school is registered for VAT; it accounts for Reverse Charge VAT and then does not recover the input tax. This is where the loss of tax occurs.
But you should really invest in some paid time with specialists.
As above. Lots of helpful comments from other AWebbers.
And, an Accountant will be able to appraise you of VAT schemes to join or to avoid, depending on your particular circumstances, and also your future plans.
VAT is calculated on the customs value at the place of importation. That is higher than the invoice value, so you will not be able to perfectly reconcile the invoice against the VAT payable. Assuming the C79 is correct (and not all are) it is your purchase invoice for input tax purposes.
I hope this re-wording is correct.
The client has purchased goods from the EU before he registered for VAT in the UK. He paid VAT in the vendor's MS.
You cannot reclaim that VAT on a UK VAT Return.
But, since your client was in business, he should have advised the supplier not to charge VAT at all. Is it possible to go back now and ask the supplier to adjust his invoice?
I have been doing some presentations on the issue; one detail I add in is to recommend that the recipient main contractor start using self-billing. This will mean the Reverse Charge invoice is correct - the main contractor generally has more resources than the sub-contractor, and he can provide a covering letter to explain the changes.
I agree. You should claim the appropriate proportion of the carriage cost.
HMRC guidance does not seem to specifically address this point.