Is VAT number needed when ordering from Arrow USA?

[danieljfarrell]

Hi,

I made an order of components from Arrow, checked out. They contracted me today saying they need a VAT number. My company does not have one, well I did have one, but de-registered last year because of I was in a phase of not ordering a lot and not making enough turn over to be required to register.

VAT is optional in UK. Just wondering if anyone else is in the same boat?

[jc101]

They may need it for US export control. I just ordered some parts from them. I wonder if FedEx will charge me the VAT or import duty, as Arrow doesn't ship DDP to the UK. I've had the parts for about a week, but nothing has arrived from FedEx. Fingers crossed.

I asked Mouser recently about a part listed as restricted, with no shipping to the EU/UK.  Turned out that with a VAT number, it could be ordered just fine.

[jonpaul]

every transaction for shipments import/export EU or UK must now have a VAT number for surveillance of criminal and terrorist materials and money.

If you do not have a VAT, he freight carries are obliged to handle the paperwork and an extra fee s added.

Jon

[jc101]

I am VAT registered, but good to know the reason.

[danieljfarrell]

Thanks everyone the helpful comments. Order still says Pending... let's see.

[tooki]

I wonder what happens if you just give them the old vat number?

[EPAIII]

I'm curious. How much does it cost to get a VAT number?

In the UK, of course.

[jc101]

Obtaining a VAT number is free. 
Using one is the admin cost of keeping track of the VAT in purchases and sales, filing the quarterly return and paying the bill.

Whatever you sell, in time or goods, costs your customers 20% more. If they are VAT registered, they can claim that back, but if you sell to the general public, you have become much more expensive.

[EPAIII]

So, is it legal to sell to the public without paying the VAT? Or just harder to get caught without the VAT number?

Pardon my ignorance, I have never been to the UK. As I said, I am curious.

[jc101]

If you are VAT registered you must, by law, charge VAT on any invoice. There are some exemptions and lower rates for specific things but those are quite limited.

As your VAT return contains costs for all purchases and sales it’s easy enough for the tax office to work out if your annual company return matches up. You can also be inspected at any time, no notice is required, though the norm is 7 days notice.
 
You don’t want to upset a VAT inspector.

[wraper]

So, is it legal to sell to the public without paying the VAT? Or just harder to get caught without the VAT number?

Pardon my ignorance, I have never been to the UK. As I said, I am curious.

Usually it is as long as business entity has small turnover so not required to be VAT registered, how small depends on jurisdiction.

[jc101]

At the moment you don’t need to be registered if your turnover is below £85,000 a year. Above that it’s mandatory.  I export quite a lot of what I make, with exports zero rated I can claim the VAT back on the parts so often get a refund from HMRC.