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Originally Posted by ssp
First of all, you have nothing to do with the UK Revenue and Customs. You don't live or operate from the UK, nor do you own a UK business. Why are you even looking at this.
This is how it works if you're operating from the UK; registering for VAT is optional, unlike in most countries. If you stay below a 60k pounds profit limit each year you don't have to register for VAT. If you are registered for VAT, and if you do business with companies located outside the EU, a 0% VAT rate applies. You have to charge 17.5% VAT to companies within the EU and you will have to pay local VAT from other countries.
All this stuff does not concern you. The reason why I asked from what country you were was because your question contradicted itself. You were using the term VAT, which is mainly used in the UK (Americans call it TAX), and you implied you were from the US.
Again, the Internet is not as gray as it may seem. Stick to the 0% VAT rate if you are doing business overseas. Why don't you talk to your tax consultant for a bit?
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I appreciate your input and have talked to our tax consultants as well as UK tax consultants and the UK revenue dept. I understand that we are not a UK company, however these rules apply to non-UK, non-EU vendors. I am familiar with how VAT works and how it works once products are within the EU, but apparently if you send more than a certain amount into the EU for consumption you are also required to pay VAT. I just think most people don't do it, but that doesn't mean it's not technically required.