How does VAT on an imported product work?
Answer:
where did you but them from because no VAT should have been added by the exporter
when we sell stuff abroad we do not charge VAT as exports are exempt, and all our purchases from abroad have no VAT
you should ask the supplier to reinvoice them without vat
you cannot reclaim vat from abroad in the UK. you have to try and claim it back in the country where the VAT was paid
this might be a scam where you are charged VAT but the supplier does not pay it over (because it is anexport) and keeps the money himself
we pay vat on everything we buy, eg a coke.
unless you can claim vat back (a business turning over 60k?) then it matters not
just flog it for more than the total you paid then you have your profit
if you are VAT registersed (and by defintion the way you are asking the question you cant be) you can reclaim any VAT paid on purchases, but have to put it onto sales.
if you are nto VAt registered then you pay VAT on purchases but your customers dont., nor can they claim VAT back on purchases from you.
I don't know that much about this kind of stuff, but if you're just an individual you just charge a price for the camera and that's it. If, however, you're a business, you can claim back the VAT you originally paid for any goods, and then when you sell them on, your buyer pays you the VAT on the goods and you as the seller are supposed to declare and pay the government the VAT you've "earned" by selling the camera.
You only have to declare (pay) VAT on the sale of the cameras if you are VAT registered. You must be registered if your annual turnover is greater than £60K. You can register voluntarily if the turnover is less than £60K but HMRC have to be satisfied, amongst other things, that it is a genuine business. The advantage of voluntarily registering is that you recover the import VAT on the cameras and VAT on general overheads.
(by the way, the first answer is wrong. We don't pay VAT on everything we buy. Some goods and services are zero rated (e.g food, passenger transport), some are exempt (e.g education, health, financial services)
hiiiii
just check this out.pure financial links to browse through..i'm sure u'll love it
http://www.lofinance.blogspot.com.
You will pay VAT on the value of the cameras When you import them, the value is based on the reciept you get, when paying for the cameras (how much they cost you) convereted into pounds.
So its vital to get and keep a reciept for the money you paid, for the cameras.
Customs charge 17.5% of the value, (or less, for different types of goods, each type has a code, avialiable from
http://www.hmrc.gov.uk/
And the matters forgotten about, in that respect, youv'e now imported, and paid vat ("duty").
Now, if you want to sell them, go ahead. To sell one or two, of your own property, and keep the money is fine.
To sell more than one or two, the Inland revenue, say, hang on, this is a buisiness.you're making regular profit, and not paying tax.
They then, (providing your genuinly testing the water, and havent sold too many) Tell you you Must register the activity, as a business, and "suggest" you might like to include the profit so far, or over look it, if your genuine, not much value, and your now doing it properly.
Then, you pay income tax on the profit, and claim ascociated expenses against this, on a form, every year.
You also "include" your paye wages on this form, as all profits are simply your wages, like a second job, and though your paye remains unchanged, it tells them your personal allowances from all scourses, to tax the additional income at the right level.
Now.if you sell more than (about) £45,000 worth of cameras, at gross selling price, per year, OR that figure divided monthly, Per month (for more than 3 months, in a row) You Must register for vat.
Under this figure, you dont have to register, and you do not charge vat, and you do not pay vat, and you cannot claim back the vat you paid at import. You are Not Vat registered.
The vat you paid on the cameras is added to the purchase price, to give you a total cost. This total cost, is used to subtract from your profit, so you get the vat "back" against Income tax, as an expence, in money, though it becomes nothing to do with "vat" and Vat calculations as such, at this point.
If you sell lots, and have to go vat registered, (remember, its on Turnover, Not profit) Then You must charge customers 17.5% vat, on top of your decided price, and give this to the Government, or in real terms, they will want 17.5% of what You get for the camera, regardless, even if you make a loss, they Must have 17.5% of every penny you recieve. (from selling cameras).
When paying this amount, you can then say, here's the vat, Less the Vat ive already paid, when i imported.
Hope this helps...
As long as you are not VAT registered, you do not have to pay VAT over. It will be treated as a private sale. Once you have to sold about £60,000 worth of goods in one year, you will have to register for VAT.
Oh, and you have to pay VAT and Import Duty when you import expensive things (or a lot of cheaper ones!) into the UK! If you do not, then Customs can seize them - and fine you!
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: