Posting items abroad and paying VAT. Advice appreciated.

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Yeoman
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Posting items abroad and paying VAT. Advice appreciated.

Postby Yeoman » Wed Apr 15, 2009 8:08 am

Hi, This may have been already discussed but I was wondering if anyone knows roughly the rules regarding charging/paying VAT and posting goods abroad from a UK VAT registered business,
I have to charge 15% VAT on everything as I am VAT registered but I heard mentioned by one of my suppliers that they dont have to charge VAT when posting to Malta...
Not sure if this is correct as he is a sales rep and doesnt work in accounts but I was wondering where I could find out more... I am not great at trawling through websites but I know the VAT people have one somewhere...
All my prices include VAT but if I didnt have to charge it for overseas customers that would be extra profit in my pocket or a price reduction for the customer... I seem to be sending a lot overseas (especially Malta) since the £ exchange rate got so bad and this could be a money saver if true... I hate giving it to the VAT man as he gives me nothing back in return so anything I could avoid giving him would be all good...
Thanks for reading.


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Skevmeister
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Postby Skevmeister » Wed Apr 15, 2009 8:10 am

Speak to the HMRC mate, the rules regarding VAT and postage are different per country and what your sending.

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saracen
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selling abroad and VAT

Postby saracen » Wed Apr 15, 2009 9:01 am

I'm no expert in the least, but have always relied on the hmrc website when I've needed info, and usually found it pretty helpful. This would appear to be a useful page:
http://www.hmrc.gov.uk/vat/managing/int ... oods.htm#1
As Malta is in the EU, it would appear to depend on whether the person you're sending to is VAT registered in Malta - you may be able to zero-rate the VAT if you jump through a number of complicated hoops! - if they are not VAT registered then you must charge VAT.
So the website may well help, but I'd echo the advice above - give the hmrc a ring to be sure; there's a VAT helpline number on the website.
Best of luck!



PotBoy
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Postby PotBoy » Wed Apr 15, 2009 4:34 pm

You have to charge VAT on all products sent to EU countries. Unless your customer is VAT registered and you have their VAT number. Then you don't have to. They would then pay their local VAT rate on importation.

For countries outside the EU you do not charge VAT.


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hamster
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Postby hamster » Thu Apr 16, 2009 9:25 am

:) at work we have to send incl vat we also enclose a vat back form with overseas HMRC then if applicable send them refund.
if you contact your vat office they can send you the refund forms to enclose
hope that helps DI



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Druid
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Postby Druid » Fri Apr 17, 2009 11:14 pm

Simple VAT rules'
1, If you are not VAT registered you cannot charge VAT or reclaim any. It is also illegal to say "includes VAT" as it does not it's just your total price. To say otherwise implies that a customer can reclaim the VAT if they are registered. They can't as you can't charge any!

2. If you are VAT registered you MUST charge VAT on all invoices to all VAT registered customers in the UK (they then claim it back!) and all non-registered customers in the UK and the rest of the EU. You do not have to charge VAT to EU VAT registered customers as long as you have thier VAT number. You will have to fill in a form to the UK VAT office with this number and sales details as a suplimental return.

3. If you are VAT registered you must pay your UK suppliers but claim back any VAT paid. For other EU registered suppliers you give them your number and don't pay the VAT. naturally you cannot claim on your VAT return but make an entry to say how much is involved.

4. If you sell outside of the EU (such as USA) you deduct the VAT and just charge the net price. No tax is due on your return.
It makes your prices cheaper!

5. If you buy from a non-EU country the UK VAT authorities will probably give you a bill for import duties plus VAT on the whole lot.

Hope this helps.

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Yeoman
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Postby Yeoman » Sun Apr 19, 2009 10:34 pm

Thanks yes that helps no end.
Much appreciated.


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