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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

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 ...


5

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 from the US, they are no different from any other good/product made from silver e.g. cutlery or jewelry and are taxed just the same. For a full understanding ...


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

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

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

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 ...


4

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 when you pay is irrelevant. I.e. you could pay it there and it still is sent to you in Australia, then VAT does not apply. But: If you do that, then you can ...


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

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

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

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 ...


2

This could be legislated to be different, but typically, the tax is applied on the net and summed. $100 price 17% is $17 20% is $20 $10 flat tax = $147


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

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 turnover of £81,000. A non VAT registered business does not charge VAT but also cannot reclaim the VAT on their business expenses. For some businesses below the ...


2

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 the VAT-inclusive price, assuming your supplier is VAT registered. If you're not clear on this then you should check since it obviously makes quite a ...


2

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 anything! As you mentioned, RRP is only a recommended price, the manufacturer cannot enfore it at all for legal reasons. Having said that I used to work in retail (...


2

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 that would normally be paying a much higher VAT. You need to register for VAT and file quarterly nil-returns so that you get that money back. It's a hassle, but ...


2

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 entities in other countries; so you cannot claim that the VAT was needed to be mentioned. Second, if you owe something, you owe it; it doesn't matter if it was ...


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