Quote:
Originally Posted by Watch_Man  If a company is turning over less than £150K then they can register for the flat rate scheme and it is an attractive proposition giving a !% extra discount in the first year. VAT does not have to be accounted for on each item sold but instead on the total turnover. This means that you effectively have to charge VAT on everything wherever in the World you are sending it. |
I think that's not strictly true. My business trades in UK and overseas and we're registered for VAT on the flat rate scheme. Flat rate VAT is not calculated on total turnover, it's calculated on the turnover which is within the scope of UK VAT - including turnover at the zero rate. Export sales are outside the scope of UK VAT, so are not included in turnover for the purposes of calculated the flat rate payment.
But warning: my business is a consultancy. There are differences in the VAT treatment of supply of goods on the one hand and services on the other, although I wouldn't have thought they'd affect the rules for the flat rate calculation.
John