Originally Posted by
Shings
I don't read the question like that at all - the clue is in the last part of the below.
Quote:
Originally Posted by
muffster 
Hi folks.
So, question is, if they have bought the parts in then inflated the price can they then charge me VAT on the total. Is this how it works?
I can't help thinking iv'e been swindled
AND...
This chaps issue is that he thinks the garage has added VAT where it shouldn't to increase his bill and hence 'swindle' him.
It's either about the size of the bill or the VAT treatment on the bill. This looks like you agree with me?
Originally Posted by
Shings
Actually no it doesn't matter a bit.
If you're a business customer your bill is £200 + vat, £240 inc vat or £240... The VAT that you claim back against your legitimate expenses is still £40 regardless.
I'm going to disagree again (getting a taste for it now!) but if the business customer doesn't get a VAT Invoice, there is no VAT content to recover so instead of paying £200 the job will cost £240.
To be valid, a business invoice has to contain 5 things:
The date of supply or tax point
The name and address of the supplying business
A description of the goods or services provided
A unique invoice number
The value to be paid on the invoice
For VAT to be reclaimable it must also provide
The vendor's VAT number
A breakdown of the cost of goods and VAT
The customer's name and address (this can be overlooked for small amounts, like a fuel purchase, for instance)
A non-VAT registered business can't provide a VAT invoice. And if a VAT Registered business doesn't give you a VAT invoice or if you get one but lose it and can't get a duplicate from your supplier, you can't reclaim the VAT (or set the value of the invoice against profits as a business expense).