VAT

[ElinaWhitt]

Hello,

Small retail shop..
Business runs with VAT apportionment scheme and buys some goods from outside UK so all goods without VAT.
Goods includes sweets and alcohol what in UK are taxable.

Is apportionment scheme still ok to use?

Regards
Ellie

 

[lesvatadvice]

Yes. Apportionment scheme uses values net of VAT. But you will need to allow for items which are bought from the EU which will be standard or zero rated when sold in the UK.

 

[ElinaWhitt]

Thank you very much for your answer but what do you mean by ....you will need to allow?
Is there anything special how I need to record EU invoices or do I need to change the scheme? Or is it fine to leave everything as it is?

 

[lesvatadvice]

If you buy stock from the EU, you won't pay VAT (except acquisition tax in Box 2). But since you are buying alcohol and sweets, which are standard rated, they have to go in on the right side of the calculation.
Happy to review a calculation if that would be helpful.

 

[Carlene Cromedy]

Yes, you can use it but the items from EU, you need to calculate their prices again according to UK standards and rates but you don't need to pay VAT!