tag:blogger.com,1999:blog-1141932539860553199.post2667705394979566190..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: VAT clusterf**kMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-1141932539860553199.post-71282606553061314622021-01-09T17:12:58.019+00:002021-01-09T17:12:58.019+00:00M, the latter.
M, the latter.<br />Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-10723431685466798972021-01-09T15:50:02.857+00:002021-01-09T15:50:02.857+00:00https://www.google.com/amp/s/road.cc/content/news/...https://www.google.com/amp/s/road.cc/content/news/dutch-bike-part-dealer-shipping-every-country-except-uk-279779%3famp<br /><br />Looks like a bunch of admin hassle Graemehttps://www.blogger.com/profile/11007306140530173428noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-25013663093980226752021-01-09T11:40:42.078+00:002021-01-09T11:40:42.078+00:00B, imports by businesses or private individuals?B, imports by businesses or private individuals?Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-50596649942525803522021-01-08T20:44:51.992+00:002021-01-08T20:44:51.992+00:00"B, do you mean sales from an EU Member state..."B, do you mean sales from an EU Member state to ROW or imports into an EU Member State from ROW?"<br /><br />Neither, I mean imports into the UK from ROW.<br />Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-66155692653779071492021-01-08T14:07:09.324+00:002021-01-08T14:07:09.324+00:00B, do you mean sales from an EU Member state to RO...B, do you mean sales from an EU Member state to ROW or imports into an EU Member State from ROW?<br /><br />Sales from a business in a Member State to a private individual in another MS are VAT-able in the home country.<br /><br />Sales from a business in an MS to a private individual outside the EU are not VAT-able in the MS.<br /><br />So if a German sells to a UK private individual, until 31/12/2020 the seller has to pay German VAT. From 1/1/2021 onwards, the seller has to pay UK VAT instead. More paperwork and faff, but no significant change in tax bill.<br /><br />Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-21176211420536834922021-01-08T09:17:28.882+00:002021-01-08T09:17:28.882+00:00Mark, that's just the EU, what about the rest ...Mark, that's just the EU, what about the rest of the world?Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-85193247632411773742021-01-07T12:27:58.927+00:002021-01-07T12:27:58.927+00:00B2, what you also must remember is that pre-1/1/20...B2, what you also must remember is that pre-1/1/2021, a European seller had to pay their domestic VAT on goods sold to private individuals in the UK. This is now a sale to outside the EU, so is now zero-rated. So their total VAT bill doesn't change (much), it is just they have two forms to fill in and two payments to make.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77538379710507148392021-01-07T10:46:02.432+00:002021-01-07T10:46:02.432+00:00B2, there speaks the Europhile. Allow me to sum up...B2, there speaks the Europhile. Allow me to sum up:<br /><br />"EU policy is that VAT is due by every seller, that is it must be collected by the seller by charging the buyer and then by remitting the amount to their country's tax office, with which each seller must be individually registered."<br /><br />So yes, VAT compliance is a pain in the arse, but once you are used to it, you just have a separate account code for "sales to the UK" which are zero-rated in [the other EU Member State] and VAT-able in the UK.<br /><br />So they deduct UK sales from sales for their own country's VAT return and then do a simple UK VAT return (no input tax to be reclaimed) and send a large payment to their country's tax office and a smaller payment to HMRC.<br /><br />Total VAT payment largely unchanged. It's just an extra hour's hassle every three months (UK allows quarterly VAT returns - most other countries do monthly).Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-79176780360373999442021-01-07T09:31:02.242+00:002021-01-07T09:31:02.242+00:00B2, so HMRC have decided to f*ck the system up lon...B2, so HMRC have decided to f*ck the system up long term, simply to deal with a short-term problem? How very like Brexit itself.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-27508942589144059642021-01-06T18:47:32.252+00:002021-01-06T18:47:32.252+00:00From an article that I have read on this, the new ...From an article that I have read on this, the new policy that VAT is due by the seller is due to a transitional problem: there are around £330m of EU goods in the UK that were imported without VAT checks before January 1st. Since they are already in the UK the related VAT cannot be due on importation, so HMRC decided that VAT is due in every case by the seller, so in the special case of EU goods already imported in the UK it is due by the *domestic seller*.Blissex2https://www.blogger.com/profile/05849329792782072250noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-15671980596851931842021-01-06T18:38:05.987+00:002021-01-06T18:38:05.987+00:00I think that our blogger does not understand the s...I think that our blogger does not understand the situation here:<br /><br />* VAT usually is due by the *domestic buyer* on importation, as in “<i>ordered some car parts from the USA last year*, price about £60 and I had to pay about £20 in import duty (i.e. VAT plus bits)</i>”; which in practice means that only "custom agents" (shippers) have to register for UK VAT, and then they handle VAT for all domestic buyers who are not VAT registered themselves.<br /><br />* The HMRC new policy is that VAT is now due by the *foreign seller*, that is it must be collected by the foreign seller by charging the buyer and then by remitting the amount to HMRC, with which each foreign seller must be individually registered.<br /><br />There are two big problems with the new HMRC policy:<br /><br />* There are many, many more foreign sellers than "customs agents".<br />* Since foreign sellers are abroad, but custom agents are in the same country as HMRC, it is much more of an issue for a foreign seller to register for VAT with what is to them a foreign tax office, than for a customs agent to register with the tax office in their same country.Blissex2https://www.blogger.com/profile/05849329792782072250noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-15808038650900758602021-01-06T16:56:59.305+00:002021-01-06T16:56:59.305+00:00DrE,
a) laziness
b) because a 'simple sales t...DrE, <br />a) laziness<br />b) because a 'simple sales tax' would be even worse than VAT.<br />Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-80290436150149912392021-01-06T16:30:21.216+00:002021-01-06T16:30:21.216+00:00Why wasn't VAT abolished on 1st January and re...Why wasn't VAT abolished on 1st January and replaced by a simple sales tax?Dr Evilhttps://www.blogger.com/profile/00176521760477086914noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-18131654150374931192021-01-06T12:32:43.084+00:002021-01-06T12:32:43.084+00:00M, yes, that is the beauty of VAT. It's a tari...M, yes, that is the beauty of VAT. It's a tariff that nobody is allowed to call a tariff. Screwing the little guys is a bonus.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-14534416129179431792021-01-06T10:57:02.339+00:002021-01-06T10:57:02.339+00:00Boris promised no tariffs, but it's clearly 20...Boris promised no tariffs, but it's clearly 20%. Or is VAT just not considered a tariff because is ostensibly screws everyone equally? Just screws small businesses more in practice.mombershttps://www.blogger.com/profile/09650866436764567516noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77096946242463723592021-01-06T10:41:06.408+00:002021-01-06T10:41:06.408+00:00D, I did control + F but couldn't find either ...D, I did control + F but couldn't find either spelling.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-26791087310063872522021-01-05T19:03:57.861+00:002021-01-05T19:03:57.861+00:00BBC grammar fail again. The word they want is Disp...BBC grammar fail again. The word they want is Dispatch.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.com