No VAT number - use another business

[Lauraadele18]

Hi

Not sure if this thread sits in this category.

My partner has started his own plumbing business and i am looking at starting an ecommerce business buying items wholesale and selling retail. There is an item i want to import from Europe but the company want my VAT number. Im notVAT registered, but my partner is....howevrr his busimess and mine are completely different (theres no tie that can loosely link why his company would purchase the item) can as a 1 off he buy this giving his VAT number but allow my business to buy it off of him so i can claim back the cost?

Thanks
Laura

 

[Mr D]

Why not buy it from the European supplier using your own business? Tell them you are not VAT registered as not hit threshold yet.

 

[TheCyclingProgrammer]

Why not buy it from the European supplier using your own business? Tell them you are not VAT registered as not hit threshold yet.

Most likely the European supplier will refuse to zero rate the goods without a VAT number and it will cost more.

 

[Deleted member 59730]

In theory he can buy and trade anything he likes. However when he invoices you for the goods he will have to charge you VAT which means you gain nothing.

 

[Mr D]

Most likely the European supplier will refuse to zero rate the goods without a VAT number and it will cost more.

So what do you suggest for the OP? To register for VAT?
Cannot see any other way they'd avoid paying VAT on the supplies.

Would not suggest that simply as a means to avoid paying VAT.

 

[TheCyclingProgrammer]

So what do you suggest for the OP? To register for VAT?
Cannot see any other way they'd avoid paying VAT on the supplies.

Would not suggest that simply as a means to avoid paying VAT.

No, you’re quite right of course. There’s no real way to avoid it.

 

[JCresswellTax]

Either register your business for VAT to avoid the VAT charge, or pay the VAT charge on the item. DO NOT use your partner's business.

 

[The Online Accountants]

Hi

(theres no tie that can loosely link why his company would purchase the item)

Thanks
Laura

Laura, your gut feeling is right. You cannot use your partner's VAT number to reclaim VAT on your behalf. Just be truthful with the European supplier and tell them you are not VAT registered. If you decide to register at a later date you can find the details here
https://www.gov.uk/vat-registration/when-to-register