How to reclaim VAT from an online retailer?

[Rrobba]

If I am a UK business registered for VAT, and I purchase goods for resale from an online retailer (not wholesaler) e.g Amazon, how do I go about reclaiming the VAT for this B2B purchase? Do I give the retailer my VAT number in advance, do I ask them for a VAT invoice after the purchase, or do I reclaim it from HMRC when I submit my returns?

Thanks.

 

[mattk]

Typically, you offset the VAT you paid against the VAT you receive and you pay the difference to HMRC.

 

[ecommerce84]

^This.

And amazon or any other retailer (assuming they are VAT registered) should provide you with a VAT invoice in some form to carry this out.

 

[Mitch3473]

I've had this out with my accountant and bookkeeper time and time again. You can only reclaim VAT back if there is a VAT no. on the invoice. AFAIK you dont need to give them your number, unless they specifically request it. Just reclaim your VAT back via the normal channel.

 

[Rrobba]

Typically, you offset the VAT you paid against the VAT you receive and you pay the difference to HMRC.

What if I sell the goods outside the EU, and therefore do not receive much (or any) VAT - do I just reclaim the VAT by submitting an invoice from the retailer to HMRC with my returns (or at least keeping these on file in case they ask for it)?

 

[Mr D]

What if I sell the goods outside the EU, and therefore do not receive much (or any) VAT - do I just reclaim the VAT by submitting an invoice from the retailer to HMRC with my returns (or at least keeping these on file in case they ask for it)?

Why submit invoices?
HMRC are interested in the figures, not the invoices. Unless they do a check in which case you need all the relevant invoices.

I just used to log in, click send, pay bill. I knew from my own figures what the bill should be - usually correct.
The send would be the quarter figures for VAT. No invoices, nothing extra at all.

 

[Rrobba]

Why submit invoices?
HMRC are interested in the figures, not the invoices. Unless they do a check in which case you need all the relevant invoices.

I just used to log in, click send, pay bill. I knew from my own figures what the bill should be - usually correct.
The send would be the quarter figures for VAT. No invoices, nothing extra at all.

I should have clarified, I'm assuming there will be checks because under the scenario I've described I will almost exclusively be reclaiming VAT from HMRC but will be paying little to no VAT because my sales are outside the EU. I suspect a business claiming refunds every quarter but hardly/never paying VAT into the system might draw attention.

 

[Rrobba]

^This.

And amazon or any other retailer (assuming they are VAT registered) should provide you with a VAT invoice in some form to carry this out.

Thanks - should I request this after the purchase? My concern is that businesses may refuse to provide the VAT invoice. Adidas' website, for example, states that they do not provide VAT invoices for online purchases (I thought it was a legal requirement?)

 

[Mr D]

I should have clarified, I'm assuming there will be checks because under the scenario I've described I will almost exclusively be reclaiming VAT from HMRC but will be paying little to no VAT because my sales are outside the EU. I suspect a business claiming refunds every quarter but hardly/never paying VAT into the system might draw attention.

You mean besides the many thousands that do it?

Bookshops are popular ones for that. Fresh food shops. Lots of businesses that can claim back every quarter.

 

[paulears]

I have my amazon account set to vat registered sellers. If I try to buy from a non vat registered source it warns me but still allows the purchase. This is pretty safe for getting the vat invoice. Sometimes you just cannot get them but it’s quite rare and just something you live with. Lots of eBay sellers often mention vat receipts on request. Oddly in all the years I sold on eBay not a single buyer asked for the vat receipt I offered.

 

[DontAsk]

Adidas' website, for example, states that they do not provide VAT invoices for online purchases (I thought it was a legal requirement?)

If you are both VAT registered then the law requires them to issue a VAT invoice.

 

[MikeJ]

We're just ending our 20th year, so 79 VAT returns. In that time we've paid VAT twice, the other 77 returns have resulted in HMRC owing us money. We've had two VAT inspections in that time, one for the first quarter and one after around 15 years.