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Where Taxpayers and Advisers Meet

VAT on crowdfund goods, US shipped, if campaign breaks £85k

Joined:Tue May 21, 2019 3:20 pm
VAT on crowdfund goods, US shipped, if campaign breaks £85k

Postby Watchmaker » Fri Feb 16, 2024 5:51 pm

SCENARIO: Kickstarter crowdfunding campaign succeeds and breaks through £85k VAT registration threshold. Goods made in and shipped from USA to backers in USA and Europe. Funds received in UK.

Q 1. I cant go back to a UK backer, for example, and ask for another 20% as he has paid agreed price. Would I keep price as is and just give one sixth to the VAT man, effectively swallowing the discount?

Q 2. goods shipped to Germany for example would mean VAT exempt as export (UK invoice)?

Q 3. Should l advise German backer that they might have to pay VAT on goods when they arrive direct from US?


Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT on crowdfund goods, US shipped, if campaign breaks £85k

Postby les35 » Thu Apr 11, 2024 9:30 am

Where goods are shipped to somewhere outside the UK, they should qualify as zero-rate exports. But that requires certain conditions to be fulfilled. If this can be achieved, it will mitigate the problem.
More broadly you will need to have someone look at the whole arrangement, to determine the VAT issues.

If you do breach the £85k (now £90k) threshold, that does not affect supplies already made, so you will not need to revert to previous customers to ask for a further 20%.

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