Vat

[minicountryman1961]

In looking for items I find VAT handled differently by different sellers. On small items, no big deal, but when they get expensive, like coilovers, brake pedal boxes, etc, it becomes an issue.

Some are private parties and cannot take VAT off for sales to USA.

One company lists prices without VAT and says they will add it if selling to a customer where it is applicable, but they don't sell to customers in the USA.

One company says:
"All our listing prices include VAT. VAT invoice can be supplied with all orders."
Does this mean that the customer has to request a refund from the UK government? Does this really work? Would I just get a refund check in UK pounds that I couldn't deposit anywhere?

[deezee]

People can't reclaim the VAT, only UK registered businesses can reclaim the VAT, with an appropriate VAT invoice, when they file their taxes.

[Enoch]

In simple terms, the only business that would not have to charge VAT is one that has a turn over of less than £72,000, which is the point at which VAT registration is compulsory. Businesses with over 72k turnover have to charge VAT on everything they sell but can reclaim VAT on everything they buy.
There is a way of reclaiming VAT on sales made outside of the European Union but I think most businesses would not want to get involved due to the aggravation that Her Majesty's Revenue and Customs are well known for dishing out.
Enoch

[spud69]

Hi Mini,

VAT returns are completed in the UK every 3 months and VAT registered suppliers can reclaim their VAT paid on all their goods and services bought in but the VAT man wants his 20% VAT on all products sold. In your case, as far as i understand it, VAT should be deducted from the supplier due to your country of origin then he can exclude the VAT payment for that invoice on his VAT return. It is my believe that when some suppliers state VAT included it really means that they are not VAT registered and VAT doesn't apply anyway, though i'm sure not always.

At Saturn, for the moment, we are not yet VAT registered although just on the limit so even though we pay VAT on products bought in VAT is not charged or mentioned in the payment process for transactions. When we do register with the VAT man we will be able to deduct VAT on materials bought in but will need to add it to the purchase price, the only problem for us is most of the product cost is made up of labour where VAT cannot be reclaimed so total price paid will rise accordingly.

It is a bit of a minefield, i may not understand it fully and i'm sure someone will correct me, but that is my understanding.

Hope that helps in some way.....Andrew

It is helping me get my head round it and the extra wok involved.

[fabbyglass]

All the more reason to stay small and keep below the 72k threshold as they goons have enough of us all as it is........fuel duty gets me goat for one!!! And how can Shell fuel vary by 5p a ltr from one garage to another.....wot utter bollox....:mad:

oh and checky me site, yeah might have few niggles but heyo Im no puta nerd

http://www.hairyhedgehog.com

If you have summat to say wear it on a t shirt so all can see....:D

[SeriesLandy]

Nice site fabby apart from it says cracking designs by hairyhedehog (missing the g)All the more reason to stay small and keep below the 72k threshold as they goons have enough of us all as it is........fuel duty gets me goat for one!!! And how can Shell fuel vary by 5p a ltr from one garage to another.....wot utter bollox....:mad:

oh and checky me site, yeah might have few niggles but heyo Im no puta nerd

http://www.hairyhedgehog.com

If you have summat to say wear it on a t shirt so all can see....:D

[fabbyglass]

does it .......oh pants:o But my teacher loved me at school honest cos she always put x's on my work:D

[Wynand]

Buying local I have no issue paying VAT, but say for instance I buy / import a part from the USA, Britain or wherever, I have I problem paying VAT for the simple reason that when the parcel arrives in my country, I have to pay the relevant VAT as per invoice before taking delivery.
Why must one pay VAT twice if something is bought aboard - sometimes you have no choice than to import, especially living in a third world country like myself.

[alga]

Generally, the VAT rate for exports is 0%. So when buying from UK to US, Canada or Australia UK VAT should not be an issue. Sales within the EU are a bit more complicated, but the exporter's rate is also 0%, but the importer is required to pay VAT to their country.

[minicountryman1961]

I wanted a pedal box. Ebay sellers charge VAT for the one that I want. Rally Design refuse to sell to the USA. I contacted carwyn@motorsport-tools.com and they told me that if I ordered from their site they don't charge VAT for sales to the USA. The shipping charge was pricey at £55 but with the elimination of VAT it comes to the same price as you pay in the UK. I sent them a payment by PayPal on Thursday afternoon. They shipped it Friday. Monday at 2pm there was a knock on the door, I was stunned to see a DHL van out front and the guy holding a box on my front stoop.

Plus, it fits into my footwell perfectly! Woo Hoo!