is vat registration always necssarye

[bigtrowel]

is vat registration always necessary after 67,000 as we have a local garage who have4 mechanics and supply materials are always busy and dont charge vat

[bigtrowel]

they have been about for at least 20 years does vat need to be visible on receipt

[Alison Jones]

HI

The VAT registration number will need to be on the receipt, the breakdown of VAT on a receipt is helpful to the customer but I don't think it legally has to be on a receipt.

Alison

[David Griffiths]

HI

The VAT registration number will need to be on the receipt, the breakdown of VAT on a receipt is helpful to the customer but I don't think it legally has to be on a receipt.

Alison

VAT details only have to be shown on VAT invoices. It is quite possible to issue invoices and receipts without any reference to VAT or VAT registration.

A VAT invoice must be issued to a VAT registered person who requests one. Many people choose to issue full VAT invoices to everybody - that doesn't mean that it's compulsory.

[Kevin Hall]

To answer your quesion: VAT registration is compulsory if the garage makes UK sales (of goods or services) subject to a positive VAT rate which exceed the UK VAT registration threshold (currently £67k) in any 12 month period.

To build on David's reply: When making supplies to the public (as David says) it is not compulsory to issue a valid VAT invoice. I always keep in mind the example that a pub does not give me a VAT receipt when I order a pint from the bar! However, as David also says, if you request a valid VAT receipt (e.g. because the car is a pool car belonging to the business), then a VAT registered supplier is obliged to give you one.

Hope that helps?

[spidersong]

As Kevin says the threshold relates to taxable income within the UK. So one thing to bear in mind is whether the garage gets a lot of it's income from running MOT tests. MOT test fees are outside of the scope of VAT, if charged by an MOT test centre, or if recharged by a non-test centre at cost. So if a couple of these mechanics mainly undertake MOT tests then they may not be turning over a taxable £67K.

Although of course the follow up work and all the parts etc will be taxable.

Hope this helps

[David Griffiths]

As Kevin says the threshold relates to taxable income within the UK. So one thing to bear in mind is whether the garage gets a lot of it's income from running MOT tests. MOT test fees are outside of the scope of VAT, if charged by an MOT test centre, or if recharged by a non-test centre at cost. So if a couple of these mechanics mainly undertake MOT tests then they may not be turning over a taxable £67K.

Although of course the follow up work and all the parts etc will be taxable.

Hope this helps


There was a either a Tribunal or Court decision recently which established that they were still exempt even if the non test centre charged less than the statutory fee, or charged the statutory fee but had paid less to the actual test centre. That might affect past returns for some garages