VAT query

[joggyb]

I run a small design business. I'm wanting to offer a printing service to my clients whereby I prepare the artwork for them and then order the prints of whatever it is they want for them, too.

I am not registered for VAT (my turnover doesn't warrant it), and if I order the printouts for our customers and they pay me directly, is it the case that they could claim their VAT later?

I'm wondering if I could I send our customers the CD with the files ready to print following the printer's templates so that they (the customers) can sort out the printing themselves. But then that is not a printing service at all! Or
I could perhaps pay the printer and give the receipt to our customers? Doesn't seem very professional...

I'd be very grateful if someone could help me on this and provide an explanation of what happens, as I really don't understand how things work if you're not registered for VAT and your customer is.

Many thanks

[Joyous]

Originally Posted by joggyb

I am not registered for VAT (my turnover doesn't warrant it), and if I order the printouts for our customers and they pay me directly, is it the case that they could claim their VAT later?

Your customers cannot claim back what you have not charged them. You are not registered for VAT therefore you cannot charge your customers VAT therefore there is nothing for your customers to claim back.

There is no problem with you not being VAT registered while your customers are, so there's no need to go searching for a VAT registered printer for them. In terms of your customers who are not VAT registered this might even give you the edge as you can charge less than any competitors who are registered. For those customers who are registered it shouldn't make a difference anyway.

Regards

Joy

[joggyb]

thank you, Joy - that's very helpful.