V.A.T on domain reselling ?

[urbanvilla]

Say you sell a domain for 25k to another u.k business or e.u member i presume it would be + v.a.t ?

If you sold outside the u.k or e.u it would be without v.a.t ?

Im not really sure does anybody know the answer ?

[rob]

is the entity selling registered for VAT?

[pred]

Plus i don't think you need to reg for vat if you're annual turnover is less than £60k ish?
Pred

[urbanvilla]

Originally Posted by rob

is the entity selling registered for VAT?

Thanks Rob !

Yes Presuming the seller is registered for v.a.t !

[retired member 1]

Originally Posted by urbanvilla

Thanks Rob !

Yes Presuming the seller is registered for v.a.t !

Goes without saying they need to add VAT onto the end price then!

[James]

You can't add VAT to a sale unless you are VAT registered.
A company can't charge you VAT unless they are VAT registered.

[russ]

If you're reg for VAT and sell within EC Member States you have to add VAT. If you sell out with EC Member States no VAT's added.

[urbanvilla]

Thanks guys for your help ! i thought it was like that rob. Thanks !

[keys]

Originally Posted by russ

If you're reg for VAT and sell within EC Member States you have to add VAT. If you sell out with EC Member States no VAT's added.

It's not as simple as that, and getting it wrong could mean a painful adjustment when the VAT man checks the books. If you have a real sale about to happen I would check with the VAT office although I doubt that they would give you an exact answer.

It is safer to quote/charge VAT unless you can refer to the specific rule which would allow exemption. If you are selling to a VAT registered entity within EC Member States you should not need to add VAT, but you do need to check their VAT number and identity if possible.

[FC Domains]

Originally Posted by keys

It's not as simple as that, and getting it wrong could mean a painful adjustment when the VAT man checks the books. If you have a real sale about to happen I would check with the VAT office although I doubt that they would give you an exact answer.

I did ask when they inspected my books, about a year ago and was told that I shouldn't charge VAT if selling to outside the EU (good enough for me). However it seems to be impossible to get a ruling on this. I've had an open enquiry on this for years.