Evening, me & my wife who’s a qualified sonographer are opening a scanning clinic. We have been told we are vat exempt as she will produce written medical reports (this is by another clinic she works at)
Does this include on the initial set-up?
We are about to sign a lease on a shop which is £15,000 +vat per annum. We are also purchasing a machine for £30,000 +vat. I have spoke to both suppliers and asked to take the vat away on the invoice as I have been told we are VAT Exempt but both have no idea what I’m talking about (neither do I to be honest!).
Am I going about this in the right way or is there a simpler way to go about this?
Any info appreciated.
Cheers
MarkBoland
Hi Mark welcome aboard. I'll be honest with you, this is a question for your accountant. There are the obvious VAT rules, ie you meet the threshold of turnover which is around £85k (guess not fact). But when it comes to products and services, that's interesting. Does this mean you will never be offering any other kind of products or services in the future which would be potentially vatable? Regarding suppliers, I've never been asked to provide a VAT free invoice. It doesn't matter if you are a sole trader under the threshold or VAT exempt, I still have to charge you VAT. It just means you can't reclaim it. I can't see any advantage for not charging VAT, other than you are 20% lower in price, but this means you take the hit with your suppliers. Like you, it's a new one on me, so be interested to find out what proper advice you received, rather than my non-accountant ramblings! |
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