VAT rate

[andyyoyo]

I am very green to this green stuff, I am just pricing my first PV system, am a sole trader (small fry) & not VAT registered.
Do I have to pay VAT at the full rate on the kit I purchase?

 

[Noshocks]

Yes!!!

 

[andyyoyo]

Why????!!, is this because I am not VAT reg, or because I am not yet MCS reg. I was hoping I could purchase a complete kit for my first install at the lower rate, otherwise its likely I will not get the job & end up in a catch 22.

 

[Markc]

Its standard rate to purchase materials (20%) it has nothing to do with your company status or MCS. We all have to purchase at 20%. It's not until to becomes an installation does it become subject to 5%. Being VAT registered its claimed back.

 

[andyyoyo]

Thanks Mark.....maybe one day I wont be so green

 

[Worcester]

@andyyoyo, check the other threads on VAT it will take up to twelve weeks to register for VAT as you will be claiming VAT back regularly and they'll do all sorts of fraud checks.