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Confused about VAT

tons_of_brickstons_of_bricks
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I'm a US seller, so I'm not too familiar with this UK VAT thing that just started happening. I just got my first UK order since this and it had a 20% VAT tax on it. From the looks of it, we paid the tax and the buyer paid nothing extra, so our pieces for that order lost 20% of their value. Am I correct in that I, as the seller, have to pay this extra tax, but the buyer doesn't pay anything extra?

Comments

  • 10 Comments sorted by Votes Date Added
  • LawrenceLawrence
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    If you check the price the customer paid, versus the price in your inventory for the parts, you should see they paid 20% more.
  • tons_of_brickstons_of_bricks
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    Thank you very much for the explanation, Lawrence! I see that now!
  • Brickmania.huBrickmania.hu
    Vote Up0Vote Down
    @Lawrence Do you have any idea how could I get a GB ID (as a registered EU seller with valid EU tax number) in order to continue my deliveries to UK? Actually I've disabled UK customers as I'm not able prepare official invoice with 20% VAT. Thanks in advance!
  • LawrenceLawrence
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    @kezany you can apply for this directly with HMRC in the UK, you would then need to file vat returns with them. Or you can use the inbuilt uk vat collection, and use the invoice accessible from the more actions drop down on the order
  • AladineAladine
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    @Lawrence: your comment January 8 "If you check the price the customer paid, versus the price in your inventory for the parts, you should see they paid 20% more". Sorry but this didn't work. Just had an order from GB for an instruction of 2.50 EUR, and the buyer was charged exactly these 2.50 but 20% GB VAT were taken from my account! This way seeling to GB is really no more possible!
  • StellarStellar
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    @Aladine instructions are Zero rate, maybe the 20% UK VAT you see is for the rest of the order?
  • AladineAladine
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    nothing else in order, only this instruction! And invoice says "20% VAT included" and my account is charged with these 20%
  • LawrenceLawrence
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    That is probably on the shipping, could you confirm that the shipping price has been increased from what it otherwise would have been?
  • AladineAladine
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    correct, the shipping price has been increased.
  • HoddieHoddie
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    It used to be that the VAT rate applied to the shipping charge was the same as the highest rate of the goods being delivered, ergo a parcel containing only zero rated goods would not attract a VAT charge on the shipping cost. This was always annoying for online retailers so it's possible they changed it with the new post-Brexit regime. The rules may also be different with Import VAT. But it's worth checking if it's not something you've considered already.

    From April 2020:

    Is VAT chargeable on delivery of goods which themselves are VAT zero-rated?
    No, the general rule is that VAT treatment for delivery would follow the supply of goods. For example, if you are delivering children’s clothes and shoes which are not subject to VAT, it follows that no VAT will be due on the delivery charge. This also applies to goods such as books, newspapers, and motorcycle helmets.
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