Re: [VAT] Calculation of VAT at retailers'

In <NwpPe.96264$G8.24116@xxxxxxxxxxxxxxxxxxxxxxxxxx>,
no.spam@xxxxxxxxxxxxxxxxxxxxx wrote:
> Elizabeth Smith wrote:
>
> > Hello,
> > Long time no see.
> >
> >
> > VAT Guide (Notice 700)
> >
> > <quote>
> > 6.10A Calculation of VAT at retailers
> > ...
> > If you do not use a retail scheme, but instead calculate VAT at line
> > level or invoice level, you must not round the VAT figure down. You may,
> > however, round (up and down) each VAT calculation.
> > </quote>
> >
> > What do they mean by "VAT figure"?
> > - the VAT per line?
> > - the final VAT total?
> >
> > What do they mean by "VAT calculation"?
> > - calculation of VAT per line?
> > - calculation of the final VAT total?
>
> "Both" to both questions, I'd have thought. That is to say, with
> reference to the introductory paragraph, if you calculate VAT at line
> level then the VAT figure is the VAT per line, and if you calculate at
> invoice level it is the final total, and in both cases "VAT calculation"
> is the process by which you arrive at the "VAT figure".
>
> > If calculating VAT at line level, is the calculation not the same as
> > described in "6.10 Calculation of VAT on invoices"?
>


I googled around a wee bit and I came across a diffeent edition of the
VAT guide (700), unfortunately only chapters 9-18, so the date is
missing!

Section 17.5.1 is preceded by a new paragraph printed in bold:

"Note: The concession in this paragraph to round down amounts of VAT is
designed for invoice traders and applies only where the VAT charged to
customers and the VAT paid to Customs and Excise is the same. As a
general rule, the concession to round down is not appropriate to
retailers, who should see paragraph 17.6."



"applies only where the VAT charged to customers and the VAT paid to
Customs and Excise is the same"

Is that not always the case unless you run a retail scheme?!? For any
retailer whose VAT is calculated at invoice or line level that would be
the case, wouldn't it?

If you have a till system which works out the VAT precisely, then the
VAT paid to HMCR will be identical, in which case: do I need to rack my
brains over the ambiguous 17.6 at all?


I am talking about a retailer with a shop and/or a webshop (in this
particular instance a gift shop).

--


Regards,

Elizabeth Smith
.

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