Can I just confirm

[Gordy]

Hi,

Can I just confirm that, although I'm UK-based, if I buy wholesale goods in the US and sell them only to US customers, I don't either pay or collect VAT on those items?

What if I buy wholesale goods in the US and sell them to UK customers? I presume that's where I can do this reverse charging stuff to claim the VAT back on the goods I bought.

Regards,
Gordon.

[paultaylor@vatease.c]

Gordon,

If you buy and sell goods in the US these transactions are outside the scope of UK VAT.

If you buy goods in the US and bring them to the UK to sell to UK customers you will have to pay VAT and Duty on them as they enter the UK. This can be done either using a monthly deferment account or paid when the goods reach the port (usually best arranged through your shipping agent).

If your UK sales are less than £58,000 then you can choose whether or not to register. If you don't register you will not be able to reclaim the VAT paid when the goods enter the country but equally you won't have to charge VAT when you sell the goods. If you do register then you can reclaim the VAT but must charge VAT when you sell the goods to your customers.

If your sales exceed £58,000 over a 12 month period then you must register for VAT.

VATease can help you determine whether it will be beneficial to register for VAT and give you assistance if required.

Regards

Paul Taylor
http://www.vatease.co.uk/