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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I'm setting up a furnishing service business

Resolved Question:

Hello, I'm setting up a furnishing service business for landlords residing outside the UK who own investment properties in the UK.
I will buy furniture in the UK to furnish their properties ready for the rental market, so I will pay VAT on these pieces of furniture.
I will then charge my clients (most of them based in China, Hong Kong, Singapore) for the furniture and my services (sourcing of furniture, delivery, assembly...).
Question: Shall I charge VAT to my clients?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloIf you are selling the furniture to the landlord then yes you would charge VAT. If you’re a VAT-registered business you must report to HM Revenue and Customs (HMRC) the amount of VAT you’ve charged and the amount of VAT you’ve paid.If you are hiring the furniture then you would still charge VAT. The use is in the UK of the furniture and the service is supplied in the UK so, UK VAT applies.
Customer: replied 1 year ago.
I'm not hiring the furniture, I'm buying it from suppliers in the UK for my clients in China, but the furniture will go in their flats in London.
Will they not argue that they shouldn't be paying VAT?I'm a sole trader so I'm not registered for VAT yet and I'm wondering if I should. What do you think?
Expert:  TaxRobin replied 1 year ago.
You can register voluntarily if your turnover is less than £83,000 but you need to register if your turnover is £83,000.They can argue the point but the rental in in the UK and your service is as well.
Customer: replied 1 year ago.
Ok.
So if I don't turnover £83,000, would you recommend me to voluntarily register for VAT or it's better if I don't?
Expert:  TaxRobin replied 1 year ago.
That depends on how long you believe you will have till you meet the threshold. There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:4 years for goods you still have, or that were used to make other goods you still have6 months for services
Customer: replied 1 year ago.
Ok. Till I get VAT registered, do I have to charge my clients with VAT?
Thanks for your help in this.
Expert:  TaxRobin replied 1 year ago.
You can’t charge or show VAT on invoices until you get your VAT number after you register.
Expert:  TaxRobin replied 1 year ago.
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Customer: replied 1 year ago.
Ok, thanks for you help!

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