VAT - who pays?

[One Day]

I just found out today that the person who is liable for VAT on goods or services is the supplier - not the purchaser.

Anyone else know this little nugget?!

 

[White Room]

Depending wether your vat registered or not..

 

[One Day]

I'm not (obviously - due to my ignorance!)
I always assumed it was a tax paid by the buyer.
Turns out that it's paid by the seller who claims it back via the sale.
It smells funny now!

 

[grumpygrouter]

VAT is a tax paid by the buyer not the seller. The seller charges VAT on the sale and then has to send said VAT it to HMRC. We are in effect tax collectors for HM Government.

 

[One Day]

Sellers are the tax collectors. It was a FOI request to HMRC which I read (will try and find it later) but HMRC said it was deffo the seller, not the buyer who was liable for VAT.

 

[White Room]

Sellers are the tax collectors. It was a FOI request to HMRC which I read (will try and find it later) but HMRC said it was deffo the seller, not the buyer who was liable for VAT.

Grumpygrouter is an accountant of standing, believe me his advise is fact..

 

[grumpygrouter]

Sellers are the tax collectors. It was a FOI request to HMRC which I read (will try and find it later) but HMRC said it was deffo the seller, not the buyer who was liable for VAT.

It is the seller that passes on the VAT to HMRC. The seller, when he buys his stock in will deduct the vat HE has paid on his purchase from the amount he has collected from HIS sale and send the balance to HMRC at his due period......if not I have been doing it wrong and advising ALL my VAT registered clients incorrectly for the past 17 years........

 

[Stewart]

The seller is liable for the vat they collect from the buyer and it's the seller's responsibility to make sure they collect the correct amount of vat on products and services and pas it on to the government, but it is still the buyer that pays the vat.

 

[grumpygrouter]

....unless of course the seller is dealing with things like mobile phones and other certain types of goods on which the reverse charge process applies.

 

[One Day]

OK - it's beyond me! I thought the angle I was seeing for the first time was that sellers were passing on the VAT which THEY technically are liable to HMRC for, and Joe public was paying it dutifuly for the seller without realising that it's not actually HIS tax to be paying.

I'll get me coat......😳