Wednesday, 28 November 2012

VAT Secret: Suppliers That...

Issue 7: Am I My Supplier’s Keeper?

Ermm..Yes you are.

I have heard this one so many times it’s no longer funny. It’s almost 11pm but I am compelled to write this before I go to bed.

Have you ever been told that the VAT responsibility rests solely with the supplier to the point that if the supplier charges you VAT incorrectly it's ok for you to recover it from HMRC as long as the supplier pays over the same incorrect amount as output tax?

I’m sure you know what I have to say about that. I will be diplomatic and simply say that this assertion is incorrect.

As a customer it is equally your responsibility to ensure that you do not recover VAT that has been incorrectly charged to you, so keep your eyes on those invoices from your suppliers. 

For case law and additional insights contact:
Marlon Appleton

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