How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4333
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

VAT I operated a heavy goods vehicle Customer which

Customer Question

VAT I operated a heavy goods vehicle for a Customer which I purchased for £60k Our written agreement was that if the Customer no longer wanted the vehicle operated it would be returned to them and they would take all responsibility for the HP costs and operate it elsewhere. This has duly happened and the Customer has either sold or hired the vehicle to a third party haulier in another part of the country. I invoiced for the VAT payment on the truck value as all VAT was paid and reclaimed by me at time of purchase. The Customer states the payment of the VAT is the third party operator responsibility and not theirs. Even though the vehicle was returned to them and they took possession of it. I have no business arrangement with the third party and have not done business with them.
Am I correct in insisting that the Customer to whom the vehicle was returned is responsible for the payment of the VAT element?
Thankyou
A. Turner VG Transport Ltd
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
In my opinion you are indeed correct. Your customer should have paid the VAT on your invoice. After all it is input tax to them and can be reclaimed. What they do with third parties with whom you had no contract is irrelevant. If they will not see reason you may have to resort to the County or Small Claims Court to seek recovery. If the debt is over 10K then it usually does not go through the Small Claims process, which is actually an arbitration not a count action.
A company with which I was involved had a customer who refused to pay a 63 quid VAT charge. By the time a debt collector had dragged them through the Courts and a Sheriff [in the North of England somewhere] visited it cost them 173 pounds and the company got its VAT!
I do hope I have shed some light on your position.
Customer: replied 2 years ago.

Thanks for that. It is as I thought and your view has reinforced my position. The Customer has agreed o pay.

£36 well spent.

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.
Please be so kind as to rate me before you leave the Just Answer site.