Buying stuff and VAT

[Shirt]

Just to be a killjoy, may I suggest that anyone who is truly concerned about this from a business point of view contact their accountant, or failing that HMRC.

The rules are very simple in concept, but the practice and application is a much more complicated thing. This is why the Tolley's VAT Guide that sits on the bookshelves at work is around 2,000 pages.

My personal opinion goes along the lines of when in doubt, charge VAT and pay it over to Customs because if you don't the penalties can be nasty.

[Trunkles]

Originally Posted by Hodgelett

There is a get around import taxes...Germany has none.
And of course once it's in the EU - no further taxes.

Maybe that's why my book from Amazon.com came via Bundespost

[Sponge]

Originally Posted by Old Bloke

My companies export products all over the world including New Zealand. Concerning our postion and VAT, if in Europe our customer is VAT registered we do charge VAT at the current rate of 17.5% and the customer can claim the VAT back through their local system. All retail sales (and trade sales if customer does not have a VAT number) in Europe carry the British VAT rate at 17.5% and has to be charged. For *Exports* outside of Europe which includes retail (distance selling) and trade, we do not charge VAT. However, at the point of entry, for both retail and trade customers, the local VAT (if any) and duty/taxes are chargeable at whatever rate applies and that includes the inclusive shipping charge.

Yep, hence some new tab facing material is somewhere in the pacific region headed my way at the moment. In NZ's case, since the import duty charge is less than NZ$45, they do not bother to claim it (it costs them more the claim it than the tax is worth). My order of 7 bows from Bowsports (and my ACE's recently) all get taxed at 12.5% on arrival. Seems a fair and simple system.

[Cimbian]

Originally Posted by Old Bloke

if in Europe our customer is VAT registered we do charge VAT at the current rate of 17.5% and the customer can claim the VAT back through their local system.

OB, I run a small business on accrual accounting basis for VAT and do NOT charge VAT to EU customers that furnish me with their VAT number. Each quarter I submit an EU sales sheet listing the customer's VAT numbers.

Are you charging VAT because you are not on accrual?