I deal in small electronic goods such as Sat Navs, CD players and DVD players. I heard there was something in the Budget that could affect my business. Can you explain please?
This is to do with special powers the VATman has to demand from you any unpaid VAT arising in your supply chain. From 1 May 2007, the type of goods that can trigger the use of this power is expanded to include electronic items that may be owned by individuals and used by them personally for leisure, amusement, or entertainment, and this would include Sat Navs and DVD equipment. To avoid the VATman asking you for extra VAT be sure to carry out reasonable checks to establish the integrity of all your supplies, supplier, and customers. If you are concerned that you could be caught up in deals that deliberately underprice the goods on offer, please talk to us without delay.