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rdwm
02-10-2003, 01:15 PM
I am considering setting up a small business building & selling specialist computers.

I have been through various sites including dti & hmce but have a nagging question on VAT relating to computer parts.

My intention is to buy computer parts, build the computers and sell them on - and I am certain that VAT must apply to this process.

Why then, do many computer and computer computer components retailers advertise their prices with & without VAT?

I believe this is because VAT doesn't apply if the product in question is going to be used within the business, whereas I am going to be selling them on, but I cannot find confirmation of this anywhere!

Can you help?

Statler
02-10-2003, 02:02 PM
Hi,

It could be worthwhile e-mailing the HMCE. According to their website, they will respond to enquiries such as yours within 10 working days. The relevant link is:

http://www.hmce.gov.uk/contact/email-advice.htm

In addition, you may find it useful to pose this question on our Discussion Category - there are a few users who have good working knowledge of the tax system.

Lee