I sometimes purchase supplies from people who are not VAT registered, but then resell them to customers and include VAT, as I am VAT registered.
When entering a Purchase Invoice for non-VAT registered suppliers should I set the VAT rate to 0% and should I change the VAT treatment to Out of Scope or leave it as Purchase of Goods or Services from UK Supplier?
Hi Steve,
Yes, the VAT Rate should be 0%. My understanding is that these purchases should still affect Box 7 of your VAT return - therefore set the VAT Treatment to 'Purchase or Goods or Services from UK Supplier'.
Regards