The Wholesale Forums

[Viral0]

I have a question about VAT. Ok so if your VAT registered you can claim back VAT spent on an item.

So lets say i purchased 10items from the USA, The company from which I purchased the goods from charge me VAT (at their standard rate depending upon the country), After importing the goods into the UK I then get charged VAT again also further import duties. So am I correct in saying that if i'm VAT registered although I must add VAT to my final cost when selling the product, I am able to claim back both the VAT added by the company who sold me the product and the VAT added at customs?

[greedyboy]

If you purchase from overseas there is no local VAT to pay as it is an export (excluding EU).

VAT is charged (plus the applicable Duty rate as well) when it enters the UK, you can claim back the VAT amount providing you are VAT registered.

If you are VAT registered you will charge the customer VAT on top of your selling price.

[ingite]

great article. A few new things I learned.

[anotheruser]

uausmani, your buyer should be charging his customer, who you are delivering to, VAT and declaring it in his quarterly return, but you should not be involved in any way in UK VAT transactions or accounting.

gadgetsquick, if you're selling retail, you would usually display an inclusive price, but you could show it nett and show the VAT amount separately. Whatever you do, you must publish your VAT Registered Number on your site, state that VAT is due on all transactions and whether or not it is included in the prices shown. Have a browse round a few sites of well known retailers and you'll see they vary how they do it, but they still follow the rules. If your business is not VAT registered, you must not charge VAT. If you are, you will keep your VAT accounts but the ones you submit for personal or corporation tax purposes will not include the VAT amounts.

Jeremy, Excise is the old name for the government department responsible for collecting excise duties. The department's responsibilities have been altered and absorbed into other departments over time. Excise duties, in the main, are indirect taxes imposed upon consumers, such as import duties.

Dioes that make anything any clearer?

Mike

[wardenc1ty]

Hi,I recently bought a hoodie for my niece from the usa via the internet,It cost $49.99 and i then payed another $35 for them to ship it to me,next thing im getting a fedex bill for £37.50(about $74) wtf is going on??????????????????????????????

[anotheruser]

You've been ripped off, wardenc1ty. Sounds as if the seller has charged you for carriage but not paid the carrier, so you've paid carriage twice. Chase them up about it and, if that's the case, demand a refund of the cariage charge you paid them. If it turns out Fedex have made the mistake, much better. You can ask them for the higher sum to be repaid.

Just re-read the site in question to make sure you were not warned of any extra charges, first.

[greedyboy]

You may not have been ripped off.

Remember there is VAT, duty and their own handling charge on the FEDEX invoice.

Can you let us know the breakdown of costs on the invoice?

[wardenc1ty]

these break down as follows


duty £15.94
vat £14.38
Admin fee £6.80

Dont you think that all this for a $49.99 sweatshirt is a bit extreme?
seeing as $49.99 equates to about £25?????????????????

[greedyboy]

I'd question the amount.

What exchange reate did they use on the invoice!?!?

[D M]

Give us a better breakdown. Looks like you paid 40% duty?