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bigduckontax
bigduckontax, Accountant
Category: Tax
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Which business category and what flat VAT rate applies to my

Customer Question

Which business category and what flat VAT rate applies to my business?

Business description:
We provide visa services for travelers to Vietnam. Our customers (private individuals) order on our website (www.visa-for-vietnam.com) a visa on arrival for Vietnam. We apply for their visa in Vietnam and send our customers the 'visa approval letter'. The customer is then allowed to fly to Vietnam and collect their visa at the airport at the immigration desk.
We charge our customers a fee for this service.

I think that it falls in the category "Retailing that is not listed elsewhere" since we provide a service to the end user, but please correct me if I am wrong.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question. You would appear to be making standard rated supplies and should be charging your customers VAT at 20%. However, your turnover must approach or exceed the registration threshold of GBP 79K before registration becomes compulsory. I would not dispute your selection category.

 

If your turnover is below the limit, unless you have much input tax to reclaim, registration might be another unnecessary hassle. You could also ask HMRC to confirm your category selection.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

On the Flat Rate scheme your tax rate is 7.5%. I gave you the normal VAT system method in my illustration, deep apologies.
Customer: replied 3 years ago.

Dear Sir


 


Your answer is OK. I only got confused by the website because they are charging me again for your additional answer if I rate your additional answer as OK or higher.


Since your additional answer was not requested by me, I decided to rate the service as poor so no additional payment was requested.


 


Hope that clarifies.

Expert:  bigduckontax replied 3 years ago.

Sorry, you are completely loosing me! You very kindly gave me a rating which resulted in my being paid. I may have added more items as an afterthought (indeed I did as I had failed to note your comment about the flat rate scheme) if I think I may have forgotten or omitted something, but I had no intention of seeking additional remuneration. The amount I received was perfectly adequate. Please accept my apologies for things happening outwith my control.

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