Quick question. We have changed from a sole trader to Ltd Company. Our VAT number was registered against old name of sole trader.
All our VAT paid to Amazon was zero rated on all invoices
When our legal entity was changed, Amazon has now started to charge us VAT for everything. VIES still shows our old sole trader details even though we are a Ltd Coy.
Question while we sort this out we are paying two lots of VAT to Amazon and the HMRC. Can I zero rate the HMRC VAT as we are paying Amazon ?
I am not a tax professional, but I can provide some general information that may be helpful. It’s important to consult with a qualified tax advisor or accountant who can provide specific guidance based on your individual circumstances and the tax regulations in your jurisdiction.
In general, the VAT treatment of transactions can be complex, especially when there are changes in the legal entity or registration details. When transitioning from a sole trader to a limited company, it is common to update your VAT registration details with the tax authorities to reflect the new legal entity.
Regarding your question about zero-rating the VAT paid to HMRC, it is unlikely that you can directly zero-rate the VAT you paid to HMRC simply because you are paying VAT to Amazon. VAT is typically charged on the supply of goods or services, and it is collected by businesses on behalf of the tax authorities.
However, you may be able to recover the VAT you paid to Amazon by reclaiming it as input VAT on your VAT return, provided that you meet the necessary requirements. As a limited company, you should ensure that your VAT registration details are updated correctly with HMRC, reflecting the change from a sole trader to a limited company. This will ensure that the VAT charged by Amazon is properly accounted for and can potentially be reclaimed as input VAT.
It is important to consult with a tax advisor or accountant to review your specific situation and the applicable VAT regulations. They can help you understand the steps you need to take to update your VAT registration details, reclaim any input VAT, and ensure compliance with the relevant tax laws.
Remember, tax regulations can vary by country, and the specific rules governing VAT can differ. Therefore, it’s crucial to seek professional advice tailored to your jurisdiction and circumstances.