Hi,
I have to carry out a small renovation in a 17-year-old flat, which means I should charge 6% vAT. However, the client is a self-employed home nurse and therefore exempted from VAT. The renovation is taking place in an apartment owned by her business. How should I draw up my invoice and what about the purchase of my goods, as I do pay 21% on my purchases?
You will indeed pay 21% vAT on those purchases and can recover it afterwards. No problem there.You will then carry out work for her. She is not subject to VAT, so you will carry out the work at 6% vAT. It does not matter that the flat is owned by her business; what matters is how it is used. Mainly privately, if I can assess the situation, so you can charge 6% vAT.
The neutrality of VAT is not breached; in this case, VAT should not have any impact on you.
You purchase to 21% VAT, but you also recover that VAT. No impact here.
You sell at 6% VAT, but you subsequently pay that VAT to the state. No impact here.
Of course, you do this collectively via your vAT declaration and it may feel different, but underlying it is correct.
Regards, Jean (former accountant, Dexxter enthusiast)
Many thanks, very clear and concise explanation!
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
.svg){kind=small}
