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13

It looks like businesses selling services (like software downloads) from outside the EU to the UK have to register for VAT if the amount of such sales goes over the UK VAT registration threshold: [If] the value of the taxable supplies you make is over a specified threshold [then] you must register for VAT So it seems plausible that this business does ...


9

Apply the discount before you apply the tax (unless your specific tax jurisdiction calls for the tax to be applied to the pre-discount value - NOTE that this would not be normal in the USA/EU). Then calculate the tax normally on the now-discounted pricing.


7

There's no VAT in the US. What you paid was "sales tax". It is not refundable to foreigners. You were unaware that you could claim it at the airport - because you couldn't, cannot and will not be able even if you come back to the store with your foreign passport. The State of New York doesn't issue such refunds.


7

If you are VAT registered you have to charge VAT at the relevant rate on applicable goods and services, and pay it over to HMRC, irrespective of whether you are under or over the threshold. If your turnover is under the threshold, you can de-register, but will have to charge VAT until they process the de-registration. See more at https://www.gov.uk/vat-...


5

Under EU Directive 98/6/EC, consumer prices have to include VAT, and thus that £70 offer is understood to include VAT. I don't know the UK law implementing the Directive, but that's just a formality. As for the price hike, that's also not allowed. A contract is formed by accepting an offer.


5

If you have been dealing with you tax returns till now, registering for VAT wouldn't make it any more different. Registering for VAT is simple, you fill up a form with the details and you would get your VAT registration form along with your VAT number in a week or so. Chances are you would be paying under the Flat Rate Scheme. You would need to file your ...


5

VAT can be loosely compared to the US sales tax. It is added to every purchase, service, and more or less everything that requires payment. But since you'll probably be only shopping - consider it as "something like a sales tax". In Europe, prices are always quoted with the VAT already included. The VAT itself can be up to 25% in some places, so its good to ...


5

The plumber will apply for and receive a refund of the amount of VAT he paid on the purchase amount. That's the cornerstone of how VAT works, as opposed to a sales tax. So for example: Pipe cost £15 to consumer -> £18 incl £3 VAT paid to the plumber Pipe cost £10 to plumber -> £12 incl £2 VAT paid to the supplier Pipe cost £5 to supplier -> £6 incl £1 VAT ...


5

You'll still pay VAT on the materials, but you won't pay VAT on the labour. However, this means that you will be hiring the labour yourself direct and you will be responsible for insuring them and managing their workload - including paying them if there's no work or down time due to weather, and if they're employees you'll have to provide PAYE, NI, pension ...


4

I love the flat rate VAT scheme. It's where you pay a percentage based on your industry. An example might be Computer repair services, where you'll pay 10.5% of your total revenue to the HMRC. But you'll be invoicing for VAT at 20% still. Would definitely recommend registering for it since you're expecting to cross the threshold anyway. And like DumbCoder ...


4

No, a tradesperson is not acting withing the law if they add VAT in an invoice if it wasn't also clear in the quote. To do so is a misleading omission under The Consumer Protection from Unfair Trading Regulations 2008. The Pricing Practices Guide section 2, while having no mandatory force, is easy to read and explains to traders that: All price ...


4

For stocks, bonds, ETF funds and so on - Taxed only on realised gain and losses are deductible from the gain and not from company's income. Corporate tax is calculated only after all expenses have been deducted. Not the other way around. Real estate expenses can be deducted because of repairs and maintenance. In general all expenses related to the ...


4

You can't reclaim the German VAT (unless you travel to Germany to collect the item), but the German vendor should not be charging VAT on sales of goods that will be exported from the EU. You need to get the vendor to quote and charge you a VAT-free price.


4

It's complicated and if you have to deal with this professionally, you should seek advice from someone (accountant/lawyer) who knows the system. There is such a thing as a 0% VAT rate (but not in every EU country). If you are selling goods taxed at 0%, you are entitled to reclaim the VAT you paid on your supplies and have to keep track of it accordingly. ...


4

The 16.5% rate applies to businesses that spend less than 2% of their turnover, or less than £1,000 on goods. It was raised in 2017, probably because the normal flat rates are too favourable for such businesses. As you say, the precise calculation gives £19.80, so it's still marginally favourable if total costs are less than 1%. Or people might choose it to ...


3

If your customer is VAT-registered in their home country, provides their full VAT number, and you do some paperwork, then it's zero-rated for VAT. If your customer is not VAT-registered, then you need to charge VAT the same as if they were in the UK. See here for full details. However, if you're selling more than a threshold amount to another EU country (...


3

With a VAT, each merchant along the supply chain needs to keep track of two numbers: the price of the item before the VAT, and the price including the VAT. The difference between the two is the amount of VAT that they have already paid. In the Wikipedia example, the manufacturer buys raw materials from the supplier. The cost of the raw materials is $1 ...


3

There are two things to consider here, whether you will have to pay VAT on top of the price quoted, and whether you will be able to reclaim the VAT yourself. From the tags, I'd guess the latter isn't an issue, but I'll cover it anyway. If the tradesman is VAT registered (and his/her VAT registration number should be on the quote if he/she is) then he/she ...


3

If I remember correctly, once you're about to exceed the threshold you really don't have a choice and have to register for VAT. As DumbCoder mentions, the quarterly VAT returns isn't that much of a hassle, plus if you fall under a certain threshold, you can sign up for the annual accounting scheme for VAT, which means you'll have to only put in a single ...


3

The way VAT works is that you pay the tax on the whole value of the services and goods, and the provider pays the difference between what they paid and what they got from you to the tax agency. So while the provider didn't pay any VAT on the parking, it was part of the service provided to you, so VAT applies.


3

Not doing this would defeat the entire purpose of a VAT. The reason for a VAT rather than a simple sales tax is that it's harder to evade. Having a simple sales tax with the type of rates that VAT taxes typically are is unworkable because evasion is too easy. Imagine I'm a retailer. I buy products from a wholesaler and sell them to consumers. With a sales ...


3

VAT means what it says — Value Added Tax. It’s a tax on the value that your business adds. You deduct all the VAT you have paid to your suppliers from your own VAT bill. So in your example, if your £100 item requires the purchase of VATable goods and services worth £50, you pay £10 of VAT — 20% of the other £50. You don’t get to deduct the costs of non-...


3

See Section 3.2 here. You appear to be correct, assuming you're not a business customer. The place of supply of freight transport and related services supplied to customers who are not ‘in business’ is as follows: intra-EU transport, where the transport begins. But other countries might apply the rules differently.


3

Since the money is passing through your personal bank account it is your turnover. Things might be different if the account was a business account owned by the property owner and if you were an employee. But that is not the case. See an accountant if you need reliable advice. I run a business but am not an accountant, not a tax adviser. Example ...


2

(1) Should I register for VAT?  – If it is below the threshold amount it is purely voluntary. If you register for VAT, you would have to charge VAT and then do returns every quarter. If you can take up this bit of hassle, it doesn't make much of a difference. One thing you need to consider: you get 1% discount during your first year of registering ...


2

If a price is quoted with no mention of VAT, then it includes VAT. So your tradesman can't then add VAT on top.


2

http://www.hmrc.gov.uk/customs/tax-and-duty.htm#3 explains the Import VAT situation quite well. As for who enforces and collects it, if you're talking about buying online and having it shipped to you then you'll notice on the parcel a Customs sticker declaring the contents and value. It is the responsibility of the courier company to collect any duty due ...


2

I'm thinking about visiting the UK and I'm wondering which things are affected by the VAT and which are not. Most consumer goods are subject to VAT at the standard rate. Most food sold in shops is zero-rated, with the exception of a handful of luxury foods. Food in cafes/restaurants and some takeaway food is subject to VAT at the standard rate. Most paper ...


2

VAT will already be included in all the prices that you see, and you can generally forget about it. It's illegal to quote prices to consumers without including the VAT, so the price you see is the price you pay. If buying items that you plan to take home with you, you should keep the receipts, and you may be able to reclaim the VAT for those items at the ...


2

In the US and indeed around the world, there are very few "tax on taxes" situations. These situations are generally called out where they exist and politicians are pressured to change them; it is generally considered onerous for a government to include an amount of taxes in calculating another tax, because the government is then taxing the money you're ...


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