13
votes
Accepted
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:
[...
- 27.9k
9
votes
Accepted
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 ...
- 2,404
8
votes
Accepted
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 ...
- 1,017
7
votes
Accepted
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 ...
- 10.2k
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 £...
- 35.7k
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 ...
- 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 ...
- 2,013
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 ...
- 1,053
4
votes
Accepted
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 ...
- 27.9k
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 ...
- 11.6k
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. ...
- 11.6k
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 ...
- 23.3k
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 £...
- 22.9k
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 ...
- 10.3k
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 ...
- 4,093
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 ...
- 22.4k
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 ...
- 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 ...
- 785
3
votes
Do I need to charge VAT to other VAT registered businesses?
Absolutely.
You are either VAT registered or you are not. If you are not VAT registered then you don't charge anyone VAT. If you are VAT registered, then you charge everyone VAT, without exception. (...
- 22.4k
2
votes
RRP/list price/retail price and cars?
The retailer can sell for whatever price they like, with the caveats that if they consistently sell at a loss they will go out of business and if they set the price too high they will not sell ...
- 1,482
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 ...
- 2,909
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 ...
- 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 ...
- 166k
2
votes
Accepted
Do I have to pay VAT when buying goods from the US in a business based in France?
You wouldn't pay VAT or sales tax, but you may need to pay a "use tax". From Wikipedia:
A use tax is a type of tax levied in the United States by numerous
state governments. It is essentially ...
- 7,506
2
votes
Accepted
Why isn't the `flat rate scheme` favourable for Limited Companies anymore?
In 2017, the rate for businesses/sole traders that spend <2% of their income on goods changed to 16.5%, probably because the government felt the 12.5% was giving too much of an advantage.
16.5% is ...
- 27.9k
2
votes
Would I need to pay VAT on this income?
Find in page 8 of the Spanish 2018 VAT manual the following:
VAT is a tax of indirect nature because it rests on an indirect manifestation of income, particularly, consumption of goods and services....
- 80
2
votes
Accounting for VAT (and expenditure) on credit purchase
How do I account for this on my VAT returns?
First, your accountant should know - you should not rely on the internet to answer business specific questions.
Second - in one go. Write down (...
- 11.6k
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 ...
- 37.6k
2
votes
Accepted
When moving EU -> EU, where to pay VAT on moving services?
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 ...
- 22.9k
2
votes
How does EU VAT work for physical service provided in non-home member state?
Which VAT rate is applicable and how do I pay it to which country?
German - you provide services locally and physically in germany. You need to register with the german VAT authorities for that.
...
- 11.6k
Only top scored, non community-wiki answers of a minimum length are eligible