VAT question

[leehack]

If your pricing is clear and Mr America decides to buy it including vat and you then pay that vat to the vat man, i don't see the problem. True this may hinder further sales and limit them, but that is a business operational failing, not even close to breaking of any law. It's a guideline for just that reason, it can be interpreted in a number of different ways, as long as you are not breaking the law (which you are not), then it is fine.

Unless they clearly state if you charge vat to someone when you shouldn't that you will be thrown in jail and the key disgarded, there really is no problem as far as i can see. My best mate (Mark the accountant) is sitting here chuckling at me writing this but also nodding.

If you dont charge vat then Mr America is happy, if you do then the vat man is happy, whatever you do consider yourself a hero as you have made someone happy.

[runningwolf]

I dont think its a case of you do not have to charge VAT, if the customer is outside the EU you must not charge him VAT. Anyone leaving there prices as the VAt inclusive prices are nt going to hand the government a tax that should not have been charged in the first place. Its a while since I did the VAT returns but I thought you declared sales outside the EU as a seperate total. Any tax inspector worth his salt that found you had been charging VAT when you shouldnt have been is going to immediatly assume you do not know what you are doing and want a good hard look at your books. It quite simple to supply the customer with a simple packing slip in his order that has no totals, most americans dont even know what VAt is so are unlikely to question it anyway.
You then simply declare the sale without any VAT and bingo your profit margin has gone up by 17.5%. My gut feeling is this is a pretty comon practice, especially with companies that have few sales outside the EU.

[runningwolf]

I love this kind of threads.
I would think of myself as a hero for saving out friends across the water some money but a villian for giving the VAT man anyhting they did not deserve.
Boooo those nasty men in suits.

[leehack]

lol whatever floats your boat.
However you choose to handle it, the money isn't yours and if you treat it as such, the door is wide open.

[pnagames]

Anyway why would anyone want to sell an item say to the dear old USA for £117.50 and get maybe one order or sell at £100.00 and hopefully get many more orders when your profit is the same?

god knows why...

you want to appear cheaper so you would not charge vat ( we went back to the customer we quoted a price that we had included vat and we gave the price without vat)