Originally Posted by Argel
Well actually that's not quite right. VAT has to be paid on non-exempt goods where the supplier is liable to charge VAT. To take your example of an unregistered seller of goods, I don't have to pay VAT on what I buy from them.
And in fact, if VAT is due and the supplier doesn't charge it, it is the supplier who will be expected to pay the VAT out of what they received. I know that to my cost, since I once had to pay VAT on a part-time salary that was contractually defined as freelance fees but had absolutely nothing to do with the main activity for which I was VAT-registered. I had to pay and then go back to my employer and beg them to pay me VAT on my last two years' salary - they were under no obligation to do so.
BTW I think the limit is now just over £60k
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