VAT avoidance

[JanineG]

Hi,

We are a service based company and our VAT bill is usually around 40k per annum and we have very little to claim back.

As most of our work takes place in the UK is it possible to avoid paying VAT by registering in another country?

Or are there any other ways to avoid these charges?

Thank you in advance for your time:)

[elainec100@cheapaccounting]

Why avoid paying this - it is not your money. You put it on top of your fees and collect the tax on behalf of HMRC

How about the flat rate scheme?

[Jaydee]

How about the flat rate scheme?

With an annual VAT liability of £40k, they will have breached the FRS turnover threshold.

[JanineG]

Thanks for your reply,

It is not really that simple as clients do not like to pay extra on top of our charges for VAT and may go to a smaller company who can be more competative.

I am not sure but I believe we turn over to much for the flat rate scheme.

[Jason L]

So your customers are end user consumers?

You need to emphasis why it's better to use your company than the smaller players, e.g. you are fully insured, you provide better cover because you have more staff available etc. (don't know what industry you are in so these are just general points)

Or can you try the B2B market? - then the fact that you are VAT registered won't matter to your client base.

[elainec100@cheapaccounting]

With an annual VAT liability of £40k, they will have breached the FRS turnover threshold.


oh yeah - need a holiday. Oh yes having one next week. Yipee

[RAL]

Hi,

We are a service based company and our VAT bill is usually around 40k per annum and we have very little to claim back.

As most of our work takes place in the UK is it possible to avoid paying VAT by registering in another country?

Or are there any other ways to avoid these charges?

Thank you in advance for your time:)

It is difficult to say whether it would hepl by registering company in another country.

Rules for place of supply are complicated, if it turns out that place of supply would be in UK, then still you have to regster for vat purpose in uk. So moving company would not help. I would recommend to speak to a vat expert to get his/her views on the subject.

Also bear in mind that rules for place of supply for services changing from 01/01/2010.

HTH

[davebrown]

Might also help if you explain what type of services you provide, and who you're supplying them to..