Good evening, due to the changes after Brexit, I would like to ask what the VAT rate should be on the invoice for the purchase of goods from a supplier outside the UK for a LTD company not registered for VAT. Will I pay VAT at the border?
It depends on the value of the consignment. If it’s under £135 then the supplier needs to register for UK VAT and charge you VAT at the point of sale. If it’s over £135 you’ll pay VAT at import time.
But in neither case would you need to set a VAT rate when entering the purchase - if you’re not VAT registered then you don’t itemise the VAT on purchases, you just treat the full inc-VAT total as an expense.