VAT
Author
Discussion

minnsy

Original Poster:

415 posts

290 months

Thursday 23rd November 2006
quotequote all
Quick question. Selling a product via the Net. Is VAT payable irrespective of where the purchaser lives in the world?

I await response!

David

Smartie

2,623 posts

296 months

Thursday 23rd November 2006
quotequote all
not a quick question!

The answer is no, not always, but depends what you're selling, to who, and where he is!

minnsy

Original Poster:

415 posts

290 months

Thursday 23rd November 2006
quotequote all
it is Software to enable detailed SIM analysis - usual purchasers are police forces, companies in the forensics space and GSM technology business (and other geeky types). The Software also comes with a SIM card reader (so a bit of hardware as well). They can be anywhere in the world!

Does that make it any simpler?

Cheers

Eric Mc

124,813 posts

288 months

Thursday 23rd November 2006
quotequote all
Selling over the internet is no different to selling by any other means.

If you are supplying goods:

i) UK customer - charge VAT at the appropriate rate.

ii) Non-UK customer but based in EU country - Zero Rate if you know the customer's VAT registration number. If they are not VAT registered, then charge the appropraite UK VAT.

iv) Non-UK Customer based in a non-EU country - Zero Rate the sale.

If you are supplying a service, the place of supply determines whether UK VAT should be charged. This can be difficult to ascertain, especially when dealing with services supplied without actually having to travel to the customer's country.

srebbe64

13,021 posts

260 months

Thursday 23rd November 2006
quotequote all
Eric Mc said:
Selling over the internet is no different to selling by any other means.

If you are supplying goods:

i) UK customer - charge VAT at the appropriate rate.

ii) Non-UK customer but based in EU country - Zero Rate if you know the customer's VAT registration number. If they are not VAT registered, then charge the appropraite UK VAT.

iv) Non-UK Customer based in a non-EU country - Zero Rate the sale.

If you are supplying a service, the place of supply determines whether UK VAT should be charged. This can be difficult to ascertain, especially when dealing with services supplied without actually having to travel to the customer's country.

So what about iii) ?

Eric Mc

124,813 posts

288 months

Thursday 23rd November 2006
quotequote all
I was never any good at counting in Latin.

Thank goodness for the Arabs.

srebbe64

13,021 posts

260 months

Thursday 23rd November 2006
quotequote all
Eric Mc said:
I was never any good at counting in Latin.

Thank goodness for the Arabs.

Your first sentence is refreshing for an accountant!

Your second sentence is refreshing for a PHer!

Eric Mc

124,813 posts

288 months

Thursday 23rd November 2006
quotequote all
At least I listened at school - unlike Robert Kilroy-Silk.

minnsy

Original Poster:

415 posts

290 months

Friday 24th November 2006
quotequote all
Thanks Eric, seems reasonably clear...

srebbe64

13,021 posts

260 months

Friday 24th November 2006
quotequote all
Eric Mc said:
Robert Kilroy-Silk

This was a perfectly good thread until you brought that idiot into it!