Discussion - Member to Member Sales - Research Center
Discussion - Member to Member Sales - Research Center
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Can I ask where this idea is coming from.
Is it from you using some other selling plaform?
My wife has a shop here in the UK, she has no dealings with VAT as her turnover is less than the £85,000 limit when you start having to register. Her accountant says that if she gets anywhere near that limit to close the shop and go on holiday until the next financial year!!
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Not here, but on other sites (Etsy, discogs) one is forced to charge VAT, which is collected automatically through a surcharge that is added to the sales price. in some cases one first receives the tax from the buyer and you get a bill from the site every month or so, on others the tax is redirected to the site as soon as the paypal payment is transferred. There is no way around it and it is all thanks to Brexit. When I sell similar stuff on the same sites to sellers within the EU no taxes need to be paid.
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Brechinite...go to hipstamp forums. several strings there. From what I surmised was that the 85k threshold is now gone.
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Hipstamp? Are they Certified Accountants?
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Ian is absolutely correct, here is a link to Uk Government site.
https://www.gov.uk/government/publicatio ...
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Not being registered doesn't mean we are VAT free.
A supplier who is registered for VAT will charge us say £100 for the goods and £20 VAT. Total cost £120. We cannot offset the £20 we paid in VAT.
Lets say we sell that item for £200. We make a "profit" of £80 because we do not charge the customer VAT.
However if we were registered we would have to charge the customer £240 ie £40 VAT.
The government would get the £40 less the VAT we paid, £20, so we would have to send them a cheque for £20.
However if we buy something we cannot sell like Till Rolls, Broadband, Telephone, Paper Bags, Gift Tags, Insurance, Desks etc we cannot offset the VAT as we are not registered whereas a company that is registered can claim the VAT back on such items.
That is the basic workings of our VAT System.
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05:26:01pm
" .... That is the basic workings
of our VAT System. ...."
I am glad you explained it so well.
Anyone who acquires a product who
tightens a screw, paints a border, lets
the gas out or pumps new gas in,
thus making the product worth more
to the next or ultimate purchaser
charges a tax on the added value, right ?
Does that replace the income taxes
we pay here in the USA that are so
hard to collect and easy to avoid ?
If yes, it would seem that the cost of
running a government, a defense system,
and/or any special social benefits provided,
would be more equitably shared, instead
of lumped on the backs of wage slaves.
No wonder the parts for my Bentley cost
so much.
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We have Goods and Services Tax (GST) in Australia, and it has numerous ludicrous anomalies. If I buy a chocolate cake, I pay 10% GST. If I buy all the raw ingredients and make it myself, I pay no GST.
The turnover threshold here is $75,000, which I don't reach, so although I'm registered, I don't charge GST.
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Ouch...I was just asking. Hipstamp's forum was where I first heard of it...it wasn't Hipstamp giving guidance.
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Not sure why I didn't think about this to begin with, but what "value" is added by reselling a stamp?
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Quite simple you buy a stamp for a $1 and sell it for $2 you have added a $1 to its value. If you do not know what you paid for it then your guess is as good as anybodys.
However the Tax man will probably say you sold it for $2 and have no proof you paid $1 for it I'll have my share of the $2 thank you.
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Are any of you charging, and collecting, UK buyers a 20% VAT tax, and then submitting it quarterly to the UK? If every country started doing this I can see many casual sellers (ie moi) taking a hike. How sad.
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09:17:13am
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re: Sales to UK and VAT
Can I ask where this idea is coming from.
Is it from you using some other selling plaform?
My wife has a shop here in the UK, she has no dealings with VAT as her turnover is less than the £85,000 limit when you start having to register. Her accountant says that if she gets anywhere near that limit to close the shop and go on holiday until the next financial year!!
Login to Like
this post
Approvals
re: Sales to UK and VAT
Not here, but on other sites (Etsy, discogs) one is forced to charge VAT, which is collected automatically through a surcharge that is added to the sales price. in some cases one first receives the tax from the buyer and you get a bill from the site every month or so, on others the tax is redirected to the site as soon as the paypal payment is transferred. There is no way around it and it is all thanks to Brexit. When I sell similar stuff on the same sites to sellers within the EU no taxes need to be paid.
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this post
re: Sales to UK and VAT
Brechinite...go to hipstamp forums. several strings there. From what I surmised was that the 85k threshold is now gone.
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01:40:01pm
Approvals
re: Sales to UK and VAT
Hipstamp? Are they Certified Accountants?
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this post
re: Sales to UK and VAT
Ian is absolutely correct, here is a link to Uk Government site.
https://www.gov.uk/government/publicatio ...
Login to Like
this post
02:29:21pm
Approvals
re: Sales to UK and VAT
Not being registered doesn't mean we are VAT free.
A supplier who is registered for VAT will charge us say £100 for the goods and £20 VAT. Total cost £120. We cannot offset the £20 we paid in VAT.
Lets say we sell that item for £200. We make a "profit" of £80 because we do not charge the customer VAT.
However if we were registered we would have to charge the customer £240 ie £40 VAT.
The government would get the £40 less the VAT we paid, £20, so we would have to send them a cheque for £20.
However if we buy something we cannot sell like Till Rolls, Broadband, Telephone, Paper Bags, Gift Tags, Insurance, Desks etc we cannot offset the VAT as we are not registered whereas a company that is registered can claim the VAT back on such items.
That is the basic workings of our VAT System.
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Silence in the face of adversity is the father of complicity and collusion, the first cousins of conspiracy..
12 Apr 2022
05:26:01pm
re: Sales to UK and VAT
" .... That is the basic workings
of our VAT System. ...."
I am glad you explained it so well.
Anyone who acquires a product who
tightens a screw, paints a border, lets
the gas out or pumps new gas in,
thus making the product worth more
to the next or ultimate purchaser
charges a tax on the added value, right ?
Does that replace the income taxes
we pay here in the USA that are so
hard to collect and easy to avoid ?
If yes, it would seem that the cost of
running a government, a defense system,
and/or any special social benefits provided,
would be more equitably shared, instead
of lumped on the backs of wage slaves.
No wonder the parts for my Bentley cost
so much.
Login to Like
this post
re: Sales to UK and VAT
We have Goods and Services Tax (GST) in Australia, and it has numerous ludicrous anomalies. If I buy a chocolate cake, I pay 10% GST. If I buy all the raw ingredients and make it myself, I pay no GST.
The turnover threshold here is $75,000, which I don't reach, so although I'm registered, I don't charge GST.
Login to Like
this post
re: Sales to UK and VAT
Ouch...I was just asking. Hipstamp's forum was where I first heard of it...it wasn't Hipstamp giving guidance.
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this post
re: Sales to UK and VAT
Not sure why I didn't think about this to begin with, but what "value" is added by reselling a stamp?
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11:13:36am
Approvals
re: Sales to UK and VAT
Quite simple you buy a stamp for a $1 and sell it for $2 you have added a $1 to its value. If you do not know what you paid for it then your guess is as good as anybodys.
However the Tax man will probably say you sold it for $2 and have no proof you paid $1 for it I'll have my share of the $2 thank you.
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