whirly
23rd January 2006, 23:10
when you purchase an item from a wholesale store, do yu still have to pay VAT but you get it back on the vat return ?
DuaneJackson
24th January 2006, 01:10
Correct. If you are VAT registered then you can claim back any VAT you pay if you have a VAT receipt for it.
But you will also have to charge VAT on EVERYTHING you sell and give that money to the vat man.
So at the end of your vat peiod you pay (or are paid) the vat you paid out minus the vat you charged. That's the simplified version anyway.