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Where Taxpayers and Advisers Meet

VAT and U.S.

jck512
Posts:1
Joined:Wed Aug 06, 2008 3:10 pm

Postby jck512 » Sun May 23, 2004 12:54 pm

I'm in U.S. I will be dropshipping merchandise from UK company to UK customers. Does that UK company have to charge me VAT?

paultaylor@vatease.c
Posts:397
Joined:Wed Aug 06, 2008 3:02 pm

Postby paultaylor@vatease.c » Mon May 24, 2004 12:56 am

If the goods never leave the UK then the company must charge you VAT.

Indeed, if the total value of the goods exceeds £58,000 in a 12 month period then YOU will be required to register for VAT in th UK.

If you are not registered for VAT in the UK you will not be entitled to recover the VAT you have been charged as you are effectively trading below the VAT registration threshold in the UK.

If your customers are mainly private individuals then it is likely that you will be better off not registering for VAT. If your customers are VAT registered businesses it is likely that VAT registration would be beneficial.

VATease can help you review your position and, if appropriate, help you to register for VAT and meet your VAT compliance requirements.

Regards

Paul Taylor
+44 121 778 4299
http://www.vatease.co.uk/


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