A huge thank you for putting this video together. It perfectly summarizes all the scenarios I've had to learn the hard way when operating online business on Amazon AND ebay pre and post Brexit with clients in UK and EU and stock in UK and EU. I'd recommend to add one more scenario and that's where a UK company buys stock in EU or another country e.g. China and sells to EU customers. It never reaches UK so there's no import or export from UK customs. The whole purchase and sale is done in EU or other country. It would be good to show what UK obligations we need to satisfy in terms of accounting for purchase VAT e.g. 0% as its not coming to UK and sale VAT of the country where the B2C client is located e.g. Spain. The sale VAT is automatically collected by Amazon, as a UK company we don't have to register for local EU VAT or IOSS when using online marketplace. But we do need to register for local EU VAT where the stock is held e.g. in warehouse in Germany. But none of the VAT is reported or applied in UK VAT return. Sales are still reported under VAT Retrun box 6. as that now includes all non VAT transactions as well. Please correct where needed.
Not sure if it's my understanding which is flawed or if the video is unclear regarding the need to register for VAT in EU countries. If you are the exporter and your customer is the importer, my understanding is that you have no VAT liability - it falls on your customer to pay VAT locally so no need for you to register.
Hi. Not since Brexit reared its ugly head. If you export to other EEC states you are will advised to set up a One Stop Shop set up with an accounting in Ireland to deal with the VAT on exports. They charge handsmely for this I am afraid
Thanks for letting me know. As long as you got the meaning then that is the most important thing. I am very time pressed at the moment so it is difficult to find time for the videos. However I think they are achieving my aim of trying to provide help for everyone out there. Best regards David
Thank you for this! Although there are a million different rules regarding tax rates your video provided a great basis to look into this further for those of us that are new to VAT returns
Great video. One of the best explanations. I’m still unsure on the following: I pay Import VAT on a shipment from China. I export a batch of these to the EU and I have registered for VAT in the destination EU country. Can I offset the EU VAT paid against the import VAT I paid in the UK? The goods were never sold to a customer in the UK so no VAT should have been charged?
Hi - a bit of a mind bender. You can offset the inport VAT on your UK VAT return. If all your sales are exports from UK then they will be zero rated and you should then get the vat back. You cannot recover UK import VAT agains any EEC vat registrations I am afraid.
A huge thank you for putting this video together. It perfectly summarizes all the scenarios I've had to learn the hard way when operating online business on Amazon AND ebay pre and post Brexit with clients in UK and EU and stock in UK and EU. I'd recommend to add one more scenario and that's where a UK company buys stock in EU or another country e.g. China and sells to EU customers. It never reaches UK so there's no import or export from UK customs. The whole purchase and sale is done in EU or other country. It would be good to show what UK obligations we need to satisfy in terms of accounting for purchase VAT e.g. 0% as its not coming to UK and sale VAT of the country where the B2C client is located e.g. Spain. The sale VAT is automatically collected by Amazon, as a UK company we don't have to register for local EU VAT or IOSS when using online marketplace. But we do need to register for local EU VAT where the stock is held e.g. in warehouse in Germany. But none of the VAT is reported or applied in UK VAT return. Sales are still reported under VAT Retrun box 6. as that now includes all non VAT transactions as well. Please correct where needed.
This was a really helpful start, thank you for putting this out there
Your more than welcome
Not sure if it's my understanding which is flawed or if the video is unclear regarding the need to register for VAT in EU countries. If you are the exporter and your customer is the importer, my understanding is that you have no VAT liability - it falls on your customer to pay VAT locally so no need for you to register.
Hi. Not since Brexit reared its ugly head. If you export to other EEC states you are will advised to set up a One Stop Shop set up with an accounting in Ireland to deal with the VAT on exports. They charge handsmely for this I am afraid
Just a wee slip, on the 12min mark you say record purchase in Box 7 but the graphic points to Box 6 :)
Thanks for letting me know. As long as you got the meaning then that is the most important thing.
I am very time pressed at the moment so it is difficult to find time for the videos. However I think they are achieving my aim of trying to provide help for everyone out there.
Best regards
David
Thank you for this! Although there are a million different rules regarding tax rates your video provided a great basis to look into this further for those of us that are new to VAT returns
Great video. One of the best explanations. I’m still unsure on the following:
I pay Import VAT on a shipment from China. I export a batch of these to the EU and I have registered for VAT in the destination EU country. Can I offset the EU VAT paid against the import VAT I paid in the UK? The goods were never sold to a customer in the UK so no VAT should have been charged?
Hi - a bit of a mind bender. You can offset the inport VAT on your UK VAT return. If all your sales are exports from UK then they will be zero rated and you should then get the vat back. You cannot recover UK import VAT agains any EEC vat registrations I am afraid.