VAT Question
Author
Discussion

bitchstewie

Original Poster:

68,382 posts

241 months

Monday 29th December 2014
quotequote all
This is curiosity and ignorance rather than anything massive but..

A company sells a service online.

If you're in the US and go to their US website it costs $100.

If you're in the UK and go to their website it automatically defaults to sterling and works out at around $125.

According to them the reason it costs more in the UK is "VAT and operating expenses".

"Operating expenses" obviously is vague and can mean anything, but could someone confirm/clarify for me, if I am paying them VAT that I have to be paying a company based in the UK that has a VAT number?

sgrimshaw

7,587 posts

281 months

Monday 29th December 2014
quotequote all
said:
, if I am paying them VAT that I have to be paying a company based in the UK that has a VAT number?
The company does not need to be UK based, but to charge UK VAT it must have a UK VAT Registration.