VAT Receipts from dept. store sales?

[StephenBusiness]

Hi all I am new to the forums so "hello" first of all :)

I am a new start up and buy and sell women's clothes / accessories (mainly on ebay).

I have just realised that next month I am going to breach the VAT threshold and so will have to become VAT registered.

I get most of my stock from places like dept. store sales etc. The receipts I get from these stores and sales are *not* VAT receipts and so I will be unable to claim VAT back on them - pretty much rendering my business a "no go".

My question is are clothes etc which are sold in dept. stores VAT inclusive? If so - would I need to request a VAT receipt and am I likely to get one?

Thanks in advance,
Stephen.

[apexaccounting]

If the receipts show the shop's VAT Number then you are able to claim VAT on the goods. All womens clothes and accessories should carry VAT.

[David Griffiths]

If the receipts specifically say "This is not a VAT invoice" then they cannot be used to backup a claim for recovery of input tax. You will have to ask the store for a proper VAT receipt, and it is legally obliged to provide one. However, some stores make life difficult by taking your name and address and posting it to you.

It is unusual, however, for a receipt to say "This is not a VAT invoice" and still carry a VAT number.

A retailer can issue a "less detailed VAT invoice" for supplies of less than £100 (My memory was that this was increased to £250, but the current version of the VAT guide says £100, so either I was wrong or the HMRC website is out of date)

Even if the receipt carries a VAT number, you will not be able to use it to support a claim for input tax unless it clearly shows the rate of VAT applicable to each product. That's where most till receipts fall short.

Look at the VAT guide section 16 f (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_001596#P1302_105375)or more information

HMRC do have some discretion in what they will accept, but if all of your purchases are like this, then I think that you need to get it right - could be a lot of cash over a period.

As to VAT, I don't know what sizes you will be dealing with, but children's clothing up to certain sizes is zero rated.