I am a bit lost and would appreciate your help/advice. We are VAT registered but have some suppliers who are not VAT registered and hence do not charge VAT.
If we purchase a vatable supply (standard rated - @14%) from a non-vendor, who on the tax invoice correctly did not charge or indicate VAT. How am I to account for it in our books, having the following options only:
Zero-rated (Does not qualify)
Standard rated (Qualify but supplier not VAT registered and did not charge vat on invoice)
Exempt (Does not qualify)
Upon selling this item we would customarily charge our clients VAT for this supply.
I hope my cry is clear!