Renew .uk before 1st Jan?

[Whois-Search]

For those who have to pay VAT...

Might be worth renewing all .uk domains you can before the VAT increase on 1st Jan?

£5 + 15% = £5.75

£5 + 17.5% = £5.88

 

[deconstruction]

I thought i read that if you are invoiced for someting before the end of the year then the 15% rate applies (even if you dont pay until 2010)?

 

[Johnp]

Chaps

For TAG holders where you are invoiced on 7th of each month for renewals/registrations made in the proceeding month, them my understanding was that the renewals needed to go through before Dec 1.

Also a bit off the Nom. topic, any advice on the benefits / downside of voluntary VAT registration, clearly you can recoup the VAT on nom fees etc, but on all sales you effectively hand over 15% going back up to 17.5% on Jan 1 and probably more once we get a new government of whatever party. How do parking payments work Sedo for example are EU based so VAT rules apply, so I assume you loose a % of Sedos rev to the VATMAN, what about non EU parking cos like ND? My initial analysis is that I'd loose out, any other comments most welcome ?


Cheers


JohnP

 

[golddiggerguy]

Wonder what companies like 123-reg are going to do with this change as I know a lot of them increased prices to gain from the reduction.

 

[retired_member12]

Chaps

For TAG holders where you are invoiced on 7th of each month for renewals/registrations made in the proceeding month, them my understanding was that the renewals needed to go through before Dec 1.

Also a bit off the Nom. topic, any advice on the benefits / downside of voluntary VAT registration, clearly you can recoup the VAT on nom fees etc, but on all sales you effectively hand over 15% going back up to 17.5% on Jan 1 and probably more once we get a new government of whatever party. How do parking payments work Sedo for example are EU based so VAT rules apply, so I assume you loose a % of Sedos rev to the VATMAN, what about non EU parking cos like ND? My initial analysis is that I'd loose out, any other comments most welcome ?

Cheers

JohnP

You're not handing over anything more than what your customers are going to pay anyway, so whether 15%, 17.5% or whatever, you're no more out of pocket either way, as it VAT collected.
As for voluntary VAT registration, do it. Most software packages make the issue of VAT management a no brainer, plus it'll give the right impression that you are a professional setup to your commercial clients, who'll also be able to claim the VAT back on your VAT invoices. Remember, the benefit to you is being able to claim back your VAT expended in the business, not one penny of the VAT you collect is ever yours, you simply offset your expended VAT against it!

 

[golddiggerguy]

We are the Governments workers ............. as TAX collectors nothing more nothing less LOL

 

[namealot]

Also a bit off the Nom. topic, any advice on the benefits / downside of voluntary VAT registration, clearly you can recoup the VAT on nom fees etc, but on all sales you effectively hand over 15% going back up to 17.5% on Jan 1 and probably more once we get a new government of whatever party. How do parking payments work Sedo for example are EU based so VAT rules apply, so I assume you loose a % of Sedos rev to the VATMAN, what about non EU parking cos like ND? My initial analysis is that I'd loose out, any other comments most welcome ?


Cheers


JohnP

Personally I would never voluntarily its just one big headache yes you can claim the vat back that’s about it… but you spend more time on paper work, accountant fee’s .bank charges etc Many of the companies/individuals based offshore you get all the grief about them wanting to pay were they are based (or not at all) lots of companies do not like there clients to know what they paid for the domain and ask for invoicing to be vague ( e.g not just abc.com sold for £xxxx)Joe public that can’t claim it back or the start up business that are not vat regged to them it just means paying out more? Personally I have never gained one customer because I’m vat registered they are there because they want the name primarily, But I know it has made it much harder with many ?

 

[HariSeldon]

Personally I would never voluntarily its just one big headache yes you can claim the vat back that’s about it… but you spend more time on paper work, accountant fee’s .bank charges etc Many of the companies/individuals based offshore you get all the grief about them wanting to pay were they are based (or not at all) lots of companies do not like there clients to know what they paid for the domain and ask for invoicing to be vague ( e.g not just abc.com sold for £xxxx)Joe public that can’t claim it back or the start up business that are not vat regged to them it just means paying out more? Personally I have never gained one customer because I’m vat registered they are there because they want the name primarily, But I know it has made it much harder with many ?

I'd take the contrary view.

Even the simplest software package (VT Transaction+ gets a thumbs up from me) handles VAT with ease these days and as you have to keep proper records whether you are VAT registered or not any additional workload is minimal and pays for itself anyway as you're reclaiming 15% of many of your purchases.

I would guess that for most domainers the number of transactions a month is relatively small and so accountant's fees also should barely be any different whether VAT registered or not.

I simply quote all prices as "+ VAT" and have never had anyone in the UK raise this as an issue whether they're a private individual or a company. Overseas (non-EU) customers are even happier when you tell them there's no VAT for them to pay.

If you mainly sell £xx domains to Joe Public then yes I'd agree VAT registration wouldn't be worth it as you're only either reducing your profit margin or increasing your price points which will potentially reduce sales.

But if you're selling £xxx+ then most people paying out that kind of dosh would IMHO actually expect there to be a VAT element and are probably VAT-registered anyway so they can claim it back.

Being VAT registered does give potential customers that extra little bit of reassurance that you're a genuine business which can only be a good thing in my eyes.

what about non EU parking cos like ND?

Anything non-EU is 'outside the scope of VAT' which means that you won't be handing over any of this revenue to HMRC.

 

[namealot]

Its pretty simple to claim vat in the UK true….? But haven’t found a software package that is simple to use to claim vat back (within the designated time scale or not…?) from other eu countries… And just to make it even more fun . The basic rule for the place of supply is changing on 1 January 2010, along with other changes to the VAT rules for international transactions…


I personally have had to increase my filling system expenditure as many stores are now charging for carrier bags... just hope my abacus and bag filling system can cope