FRS Vat and EU purchases

[rejoyce]

Hi

First post here

I am an IT Contractor and am thinking of buy a new Mac Book Pro laptop. I am registerd and approved for FRS VAT. As I understand it I can buy a laptop of > £2000 (inc. VAT) in the UK and claim back the VAT paid.

I wondered, can I buy a laptop from an Apple Seller in Ireland (ROI), provide my UK address, VAT number and have it shipped here and therfore purchase Ex-VAT, thus not having to reach the £2000 threshold. I am looking at one for about £1400 ex VAT.

Is this allowed as it is for non-FRS companys, or as a FRS VAT member are there restriction on doing this?

thanks

Richard

[Craig@Clarity]

Hi Richard,

There is no issue with you buying any equipment from another country and doesn't affect your FRS eligiblity so you can buy it from ROI. You would simply purchase the laptop and capitalise it in your business as an asset. There would be no VAT paid to Apple ROI but you will need to add £280 (20% of £1,400) to box 2 of your VAT return under the flat rate scheme as "VAT due from you (but not paid) on acquisitions from other EU countries" (http://www.hmrc.gov.uk/vat/managing/...-returns.htm#5). You wouldn't then be able to claim this back from HMRC since the flat rate scheme accounts for the effective reclaim of VAT on expenses (http://bit.ly/uypHWt)

[ASB]

Hi and welcome,

There is no issue with you buying any equipment from another country and doesn't affect your VAT status in the company at this level. You would simply purchase the laptop and capitalise it in your business as an asset. There would be no VAT included so you can't claim anything back from HMRC and it doesn't need to feature on your VAT returns either under the flat rate VAT scheme.

On what basis would there not be vat at the point of importation?

Surely it should still be subject to acquisition tax (assuming the vat is not charged by the carrier as a result of the customs declaration). This can then only be reclaimed in the normal way.