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13 votes
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Should I pay a company who failed to collect VAT from me over 6 months ago?

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: [...
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9 votes
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How to deal with discount when invoice has multiple line items and multiple tax rates?

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 ...
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  • 2,366
8 votes
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If I'm voluntarily VAT registered, but under the threshold, do I have to charge vat?

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 ...
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  • 1,007
7 votes

US VAT refund, can it be claimed at a later date?

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 ...
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  • 129k
7 votes
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Do US delivery companies pay out insurance if the declared value of a package is $0?

6 months ago I sent some sports cards The goods should have been declared under Customs Procedure Codes 23 00 000. Temporary export for return in an unaltered state. Free circulation goods ...
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  • 10.1k
5 votes
Accepted

Is VAT applied when a tradesman charges for materials?

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 £...
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  • 34.7k
5 votes
Accepted

How to reclaim the value-added tax when buying something on eBay?

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 ...
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  • 22.2k
5 votes
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VAT listing on repair job

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. ...
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  • 2,633
5 votes

VAT on building work

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 ...
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  • 709
5 votes

Why is VAT charged on silver coins in the UK?

Please review the royal mint's guidelines on legal tender. The only silver coins that are legal tender in the UK are commemorative or limited edition coins minted by the royal mint. If your coins are ...
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  • 1,993
4 votes
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UK Ltd taxation on stocks/bonds income and real estate rent income

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 ...
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  • 10.5k
4 votes
Accepted

Is there such thing as "no VAT" or is it just 0%?

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 ...
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  • 1,022
4 votes
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What's the point of a 20% (alias 16.5%) VAT flat rate in UK?

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 ...
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4 votes

If I travel to Finland to pick up a purchase and pay the outstanding price in the EU do I have to pay VAT?

If I pay the remaining money while in Finland will I pay VAT (24%) on any part of the purchase? No. You HAVE to PAY VAT if you take possession of the instrument while in Finland - where you are ...
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  • 11.4k
4 votes

Do businesses make a profit on VAT?

Generally: No, only if they commit VAT fraud. Basically, VAT is money for the government. The business collects it, deducts the amount of money it PAID for VAT, then sends the rest to the government. ...
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  • 11.4k
4 votes
Accepted

VAT/Duties Import to UK from USA

The handling fee is set by the courier and different couriers charge different amounts. Parcelforce currently charge £12; DPD charge a %age of the value; etc. Looks like whatever courier was used ...
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  • 21.8k
3 votes
Accepted

Why do VAT-registered businesses in the EU charge VAT to each other?

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 ...
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3 votes
Accepted

Should I charge VAT on a customer who is VAT registered in a EU country?

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 ...
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  • 22.2k
3 votes
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Could somebody explain Wikipedia's VAT example calculation to me?

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 ...
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3 votes
Accepted

On what amount am I supposed to pay VAT for sales?

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 £...
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  • 22.2k
3 votes

Do payments into my bank account in the day to day business of managing my friend's/client's property count as MY turnover? (England)

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 ...
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3 votes

Supposing the same amount, has a contractor the same cost (6K + VAT) of a employee (6K) for a company?

At £6,000 per month your employer pays £6,000 plus about 13% employer national insurance contributions, plus your holidays (31-33 days per year usually), sick days and some other days, like jury ...
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  • 20.9k
3 votes
Accepted

Should I Charge Customers VAT Before Receiving My VAT Number?

The page you linked to says that while you wait for your VAT number: You cannot charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC ...
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  • 146
3 votes
Accepted

Can a VAT registered company produce a quote with a mix of VAT products and NON VAT installation?

I wonder if this a Tax fiddle? Doubtful. I used to employ 3rd parties who were not VAT registered in the UK to undertake work for my company (which was VAT registered). The invoice from my company to ...
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  • 705
2 votes

Is it usual for a tradesperson not to charge VAT?

Assuming this to be in the UK, and I suspect the rules are similar elsewhere, this indeed may be true. There is a threshold beneath which a business does not have to register for VAT - currently a ...
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  • 121
2 votes

I am not VAT registered. Do I need to buy from my supplier with excl VAT prices or incl VAT?

It's quite common for VAT-registered businesses to quote ex-VAT prices for supply to other businesses. However you're right that when you make an order you will be invoiced and ultimately have to pay ...
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  • 2,892
2 votes

What items are exempt from the VAT? [U.K.]

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 ...
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  • 2,707
2 votes
Accepted

Stop paying VAT on digital sales when earnings are under £81k

You can't currently avoid it. The reason the legislation was introduced was to prevent the big-name developers from setting up shop in a low-VAT country and selling apps to citizens of EU countries ...
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  • 13.8k
2 votes

Plumber charging VAT on parking

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 ...
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  • 129k
2 votes

Should I pay a company who failed to collect VAT from me over 6 months ago?

Note: I am not a lawyer. This is my personal opinion and interpretation. First, your source is European Law, which obviously doesn't apply outside of the EU. The EU cannot make laws that bind ...
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  • 37k

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