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Adam Hunt
Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 390
Experience:  FCCA, FFA, FFTA
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I have a UK Ltd company and de-registered for VAT in Feb. I

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I have a UK Ltd company and de-registered for VAT in Feb. I wasn't aware i needed to inform my supplier who I order from in Latvia and he is now saying he must charge me VAT on the items I ordered from him, is this correct?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: that's all for now, i need to know what to say to the Latvian supplier as he received correspondence about the de-registration from his own tax office

Hi I am one of the experts. Yes they are right because they need to charge VAt to non-VAT registered customers in UK. So you were required to tell them about de-registration.

Hope I have answered your question?

Customer: replied 15 days ago.
But what will happen next? will he want to charge me the VAT now or can he explain he was not informed and I can write a letter to support this, will he still need to pay the VAT?

They need to charge you VAT and they have to pay this to their authority. This payment should be made asap.

If your supplier asks you to give this info in writing then send it him. I think if you make the payments then it should fix the issue.

Please do accept answer if you have no other questions?

Customer: replied 15 days ago.
... and what happens if I cannot afford to pay the VAT back to him (which was the whole purpose of de-registering in the first place)?

Once you are VAT registered then there was no need to pay your supplier for info. So if you now need to pay your supplier then unfortunately you need to do that. You should get in touch with the supplier and try to find an agreeable arrangement with them.

Legally you have to pay unfortunately.

Hope I have answered your question?

Customer: replied 15 days ago.
Just to be totally clear on this. It legally falls to the Latvian supplier to pay the VAT He owes however as I made the mistake I should help him: pay it.

But since you have not informed them earlier so it is also your responsibility to that extend to get it all fixed legally.

Hope it is clear now.

Adam Hunt and 2 other Tax Specialists are ready to help you
Customer: replied 15 days ago.
Thank you

Welcome and thank you for accepting the answer. Good luck.