Can a company charge VAT but refuse to issue a VAT invoice/receipt?

[smnpukbmf]

I'm battling with EE to get them to provide a VAT receipt but they're refusing saying they don't supply them

They say the particular product I've bought isn't available for businesses so they don't provide VAT receipts.

I say this is baloney and surely if they charge VAT they have to provide one?

Any ideas what I can do?

 

[Newchodge]

I'm battling with EE to get them to provide a VAT receipt but they're refusing saying they don't supply them

They say the particular product I've bought isn't available for businesses so they don't provide VAT receipts.

I say this is baloney and surely if they charge VAT they have to provide one?

Any ideas what I can do?

Report them to the VAT branch of HMRC?

 

[UK Contractor Accountant]

More likely you do not have business account set up with them so they don't issue vat receipts for individuals?

 

[smnpukbmf]

More likely you do not have business account set up with them so they don't issue vat receipts for individuals?

That's their argument. They don't provide this service to businesses. But they're still charging VAT so I don't see how they can refuse a VAT receipt?

 

[Newchodge]

More likely you do not have business account set up with them so they don't issue vat receipts for individuals?

But they charge VAT to individuals, so, if asked, have to provide their VAT number.

 

[FreddyG]

Any ideas what I can do?

Sadly, absolutely nothing!

By buying a good or service that is subject to consumer T&C only, you are declaring yourself to be a consumer and/or an enterprise that is not VAT registered. They therefore do not have to supply a VAT invoice.

So even though EE charges VAT and accounts for it to HMRC, they can simply show "VAT included" on a receipt without providing the full VAT breakdown.

You can, of course, ask HMRC to accept alternative evidence if you genuinely use it for business and can prove VAT was paid. Quite what that alternative evidence might be, I do not know!

 

[Newchodge]

By buying a good or service that is subject to consumer T&C only, you are declaring yourself to be a consumer and/or an enterprise that is not VAT registered. They therefore do not have to supply a VAT invoice.

Really?????????

 

[smnpukbmf]

Sadly, absolutely nothing!

By buying a good or service that is subject to consumer T&C only, you are declaring yourself to be a consumer and/or an enterprise that is not VAT registered. They therefore do not have to supply a VAT invoice.

So even though EE charges VAT and accounts for it to HMRC, they can simply show “VAT included” on a receipt without providing the full VAT breakdown.

You can, of course, ask HMRC to accept alternative evidence if you genuinely use it for business and can prove VAT was paid. Quite what that alternative evidence might be, I do not know!

So I could just put the invoices through Xero as usual, claim the VAT and hope nobody will check/care?

Their invoice says: "(Including applicable taxes. This is not a VAT invoice)"

This would definitely be the easiest option for me!

 

[FreddyG]

Really?????????

Yup! UK tax laws are bonkers, to the point of being certifiable!

UK VAT law (Value Added Tax Act 1994, s.29 and The VAT Regulations 1995, Regulation 13) state that any VAT-registered supplier must provide a VAT invoice for taxable supplies made to another taxable person (i.e., a business customer) on request.

They are not required to issue a VAT invoice for sales to consumers (non-business customers). Most do, but there is no compulsion on their part! Stupid, I know!

 

[Newchodge]

Yup! UK tax laws are bonkers, to the point of being certifiable!

UK VAT law (Value Added Tax Act 1994, s.29 and The VAT Regulations 1995, Regulation 13) state that any VAT-registered supplier must provide a VAT invoice for taxable supplies made to another taxable person (i.e., a business customer) on request.

They are not required to issue a VAT invoice for sales to consumers (non-business customers). Most do, but there is no compulsion on their part! Stupid, I know!

So a rogue cowboy builder (for instance) could charge 'VAT' to all their domestic customers, without those customers being able to check they are VAT registered?

 

[UK Contractor Accountant]

But they charge VAT to individuals, so, if asked, have to provide their VAT number.

The EE VAT number is 245 7193 48. This number is used for EE Limited, a UK-based company, and is often listed on invoices and terms of service documents. Some invoices may show "EE VAT Registered Number" on the first page next to "Amount due" which includes VAT

 

[Newchodge]

Yup! UK tax laws are bonkers, to the point of being certifiable!

UK VAT law (Value Added Tax Act 1994, s.29 and The VAT Regulations 1995, Regulation 13) state that any VAT-registered supplier must provide a VAT invoice for taxable supplies made to another taxable person (i.e., a business customer) on request.

They are not required to issue a VAT invoice for sales to consumers (non-business customers). Most do, but there is no compulsion on their part! Stupid, I know!

That doesn't actually mean

By buying a good or service that is subject to consumer T&C only, you are declaring yourself to be a consumer and/or an enterprise that is not VAT registered.

 

[FreddyG]

BTW, here's some meat on them thar bones -

So a rogue cowboy builder (for instance) could charge 'VAT' to all their domestic customers, without those customers being able to check they are VAT registered?

You’ve put your finger right on one of the nastiest grey areas in small-business VAT fraud.

I know all this because, about seven years ago, we bought a piece of heavy equipment from a business (VAT registered, etc.) and on delivery, I asked for an invoice, so that we could pay by bank transfer there and then.

On hearing the words "VAT invoice," our protagonist got back into his truck and legged it. Considering that was for about £5k, we got a piece of kit for free!

The guy was running a shadow business, but in the name of his main VAT-registered business!

 

[DontAsk]

It's all explained here https://www.gov.uk/guidance/record-keeping-for-vat-notice-70021#vat-invoices

Was it over £250?

 

[fisicx]

So I could just put the invoices through Xero as usual, claim the VAT and hope nobody will check/care?

But if the product is not for businesses you are using it outside the T&C.

 

[MyAccountantOnline]

So I could just put the invoices through Xero as usual, claim the VAT and hope nobody will check/care?

Their invoice says: "(Including applicable taxes. This is not a VAT invoice)"

This would definitely be the easiest option for me!

Have a read of this HMRC notice (HMRC will accept some claims for input VAT without invoices)

VIT31200 - How to treat input tax: alternative evidence for claiming input tax - HMRC internal manual - GOV.UK

www.gov.uk

 

[Johnny Be Good]

I'm battling with EE to get them to provide a VAT receipt but they're refusing saying they don't supply them

They say the particular product I've bought isn't available for businesses so they don't provide VAT receipts.

I say this is baloney and surely if they charge VAT they have to provide one?

Any ideas what I can do?

Do you get a statement every month with a breakdown? It should really show the VAT

 

[paulears]

I had exactly this issue with EE myself two years ago. They refused to issue VAT receipts for private accounts. They insisted I change to a business account at an increased price to get them. In the end, they reduced my monthly rate on the understanding I would not get receipts showing the VAT! How a big company like EE are allowed to break what I thought were rock sold rules is beyond me. I've just not put the phone through the business for two years, but now I have increased the contract price for more facilities - I guess I will have the same trouble again!

 

[pentel]

Lyca Mobile use the EE network, are a lot cheaper and provide invoices with VAT shown and their VAT number.

 

[scstock]

I had exactly this issue with EE myself two years ago. They refused to issue VAT receipts for private accounts. They insisted I change to a business account at an increased price to get them. In the end, they reduced my monthly rate on the understanding I would not get receipts showing the VAT! How a big company like EE are allowed to break what I thought were rock sold rules is beyond me. I've just not put the phone through the business for two years, but now I have increased the contract price for more facilities - I guess I will have the same trouble again!

You should dob them in