[ Date Index ] [ Thread Index ] [ <= Previous by date / thread ] [ Next by date / thread => ]
On Wed, 23 Dec 2009 08:46:23 +0000 John Hansen <whitover@xxxxxxxxxxxxxx> wrote: > I have ordered some parts from an EU supplier who insists on charging > VAT at his rate > whereas I thought it should be at the lower UK rate. Have any of you > experiences relating to this? > If so please advise me. > > Happy Christmas to all. VAT is paid at the rate determined by the jurisdiction within which the supplier is registered, not the purchaser - there may be import charges that UK customs apply later but IIRC refunds are not given. VAT is actually paid by the supplier, not by the purchaser - usually the supplier merely passes on the VAT charge as part of the bill but the monies received in this way are not kept separate for paying VAT later. This is how retailers can offer "no VAT" sale discounts - they pay the VAT themselves as normal but don't charge it to the customer. Whether the customer actually pays the VAT is up to the retailer, the customs man only cares that the retailer pays the VAT. A customer will never be prosecuted for not paying VAT; retailers/suppliers can be bankrupted by the fines for not paying VAT. Therefore the rate of VAT charged is determined by the supplier as it is solely the supplier who is liable for paying the VAT in the first place. If you are VAT registered in the UK and you sell the item on, you can only charge UK rates of VAT so you need to build that loss into your profit margin. Each supplier is only liable for their own VAT payments. -- Neil Williams ============= http://www.data-freedom.org/ http://www.nosoftwarepatents.com/ http://www.linux.codehelp.co.uk/
Attachment:
pgp9OUbPwnJ30.pgp
Description: PGP signature
-- The Mailing List for the Devon & Cornwall LUG http://mailman.dclug.org.uk/listinfo/list FAQ: http://www.dcglug.org.uk/linux_adm/list-faq.html