VAT - Can you charge end user, 12 months after the fact?

[Baron Numpti]

Hi All,

I am a newbie here, so please forgive me if this question seems a little stupid, but I am somewhat baffled.

I have paid for goods and services that have yet to be delivered and installed. The goods were paid up, in full at the time, and I have a receipt to the effect.

The company in question is now saying I have to pay them VAT at a rate of 20% or I will lose my goods, the services, and my already paid funds.

The goods were furniture bought for an apartment in Bulgaria, hence the 20% rate of VAT. I am not a VAT registered company or individual.

I appreciate this might be a little out of jurisdicition, but any advice as to whether this practice is possible/legal etc would be greatly appreciated!

Many thanks in advance.

[Zeno]

I suspect you will have to take legal advice in Bulgaria.

In the UK you should have been informed if the price was Inc. or Exc. of VAT. I have no idea if this is the same in Bulgaria but I assume it would be broadly similar.

[JGOffshore]

The administration of VAT (indeed any tax) in Bulgaria is a bit hit and miss but even allowing for that it does seem strange that VAT wasn't accounted for by the supplier at the time you paid which should have been the point of supply. However, Bulgarian businesses do tend to slip and slide around the legal issues when it suits them.

You can't PM me at present (as you don't have enough posts) but if you email me at the address below and attach a scan of any paperwork you have relating to the purchase I'll have a look at it.

Although based in the Isle of Man I am a director of a UK listed company which develops residential, holiday and commercial property in Bulgaria so I have a working knowledge of the Bulgarian laws (and how they are often ignored)!

james@jamesgreenandco.co.uk