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Selling Over The Internet - VAT Considerations

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The VAT People - Expert Author

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13th August 2013

As more businesses sell goods over the internet, there are a number of VAT issues that they should consider

With eCommerce becoming ever bigger we are finding that we are advising more and more businesses in respect of VAT on eCommerce and these are in two distinct areas.

Firstly, UK businesses who sell goods to the world and secondly, UK businesses which support overseas companies, often parents who want to sell to the UK.

For both types of business there are planning considerations to be aware of and briefly these are:

UK e-tailers - be aware of the different VAT rates of your goods when sold. We say this because whilst sales to UK customers will be at the UK domestic rate, sales to overseas customers will be affected by a number of issues including where your customers are located and whether your customer is a business or a consumer (individual). Your systems need to identify certain pieces of information and if sending to other EU countries you will need to be aware of the complex Distance Selling Rules. As this affects pricing policies as well as actual VAT declarations we recommend planning such arrangements.

We have much experience in assisting and advising businesses structuring their business to ensure that internet sales are correctly declared.

In respect of supplying UK consumers over the internet from overseas, considerations include how the overseas shipper will treat such sales given that the consumer could be liable for UK VAT and possibly duty on top of the advertised purchase price. Many businesses wish to supply on a Delivered Taxes Paid basis to the consumer so need again to plan how this is done.

Again we have much experience in assisting with planning the necessary structures so business runs smoothly


About the Author

The VAT People are leading VAT and Customs Duty consultants based in the North West of England. We work with a wide range of businesses throughout the UK as well as assisting our accountancy colleagues to unravel the thorny VAT issues for their clients. We are one of the UK's largest and most comprehensive sources of VAT and Customs advice, our consultancy team having over 140 years of experience in VAT and Customs gained in either HMRC or a Big 4 accountancy practice environment.

Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.



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Article Published/Sorted/Amended on Scopulus 2013-08-22 09:01:13 in Tax Articles

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