Originally Posted By: Lee N
Originally Posted By: Gordon Scott

VAT registered businesses can claim it back when they buy and pretty much have to to remain competitive, so every transaction requires the business to be a tax refund claimant on a purchase and a tax collector on a sale.


Actually, we can't, not unless the seller has a UK VAT number. The US company should, however, allow us to provide them our GB VAT number, in which case it should be sold to us at the ex-VAT price and we enter it as "out of scope". If we sell it on, then we charge the VAT.

It's a pain because a lot of sellers charge the VAT but don't allow us that option. Some sellers just ignore it completely and don't charge any VAT. The whole thing is a complete mess and ridiculously overcomplicated for both the seller and the (business) buyer.

For personal, non-business customers, all US companies are supposed to charge UK VAT for digital products, at the time of payment. For physical products they don't, we pay it our end at customs. At least that's how it was last time I looked.

I didn't know about the non-UK sellers and VAT number stuff. Very messy and means that some imported stuff will be double-taxed at that 20% each time.

I'd hoped that the UK would scrap VAT after we left the EU, along with a large number of other cumbersome EU regulation, but next to nothing has changed. Sigh.

Jazz relative beginner, starting at a much older age than was helpful.
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