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]

is the entity selling registered for VAT?

Thanks Rob !

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

 

[retired member 1]

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]

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]

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.

 

[urbanvilla]

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.

So if you were to buy say domains for 25k + v.a.t and were to spin them to the u.s for 40k no v.a.t as they are outside the eu.

Could i expect a rebate for the v.a.t of £4370 ?

 

[scooter]

So if you were to buy say domains for 25k + v.a.t and were to spin them to the u.s for 40k no v.a.t as they are outside the eu.

Could i expect a rebate for the v.a.t of £4370 ?

Only if:
You are VAT registered. If you aren't, you cannot.


You can register manually for VAT anytime you wish even if your turnover is less then £60K.

So if you have one or two big domain sales in the pipeline that you are buying within the EU and you know they are going to charge you VAT, but you have buyers lined up outside the EU, it is advantageuos to register for VAT as you can claim the VAT back on the initial purchase and at the end of the financial year you can derigister.

But bear in mind, during the period you are registered, you must charge VAT on all sales. (even if you have not been charged VAT on your purchases)


.

 

[Domain Channel]

Also you can claim VAT back on all gadget purchase you can atribute to your business, in most of our case's that is a load of dough!! I think you can also claim upto 12 months before you register for VAT on all VATable stuff yu buy to set up your business, also 1/3 of living expenses if you work from home.

 

[Jeewhizz]

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.

It is possible to get a ruling on this - my accountant has done so for me.

 

[aZooZa]

VAT is technically applicable. The confusion lies in the fact that the rate is 0% for exports.

 

[urbanvilla]

It is possible to get a ruling on this - my accountant has done so for me.

So what was the ruling Jeewhizz ?

Thanks !

 

[Jeewhizz]

Basically, provision of domains/my services to companies based outside the EU are non-vat rated, and vat shouldn't be charged.

My accountant advised me to get this ruling verified for each company I own, and to get it in writing - because you don't want it to come back and bite you. My accountant chased HMRC and did the letters etc for me. Total cost to me was about £100 or so.

Jee

 

[urbanvilla]

Basically, provision of domains/my services to companies based outside the EU are non-vat rated, and vat shouldn't be charged.

My accountant advised me to get this ruling verified for each company I own, and to get it in writing - because you don't want it to come back and bite you. My accountant chased HMRC and did the letters etc for me. Total cost to me was about £100 or so.

Jee

Thanks Jee ! but i presume you charge v.a.t on companies within the e.u including the u.k whom may purchase your domains ?

 

[domaingenius]

Thanks Jee ! but i presume you charge v.a.t on companies within the e.u including the u.k whom may purchase your domains ?

PM sent DG

 

[Jeewhizz]

Thanks Jee ! but i presume you charge v.a.t on companies within the e.u including the u.k whom may purchase your domains ?

Yup, I charge everyone in the UK/EU VAT on all my domains/services. I still get the occasional person complaining about having to pay an additional 17.5%!

Jee