Hello and welcome to the site. Thank you for your question.What is the nature of your business .. principal activities/sector?
What is your turnover?
Do all your suppliers charge you VAT on your purchases?Many thanks
What is the nature of your business .. principal activities/sector? it's a retail shoes company - selling through shop, our company website and also through Amazon/ Ebay etc. Internet sales to EU and USA as well.
What is your turnover? Around £980,0000
Do all your suppliers charge you VAT on your purchases? 99 % standard rated and 1 % zero of the total sales. All EU & US sales is regarded as Standard rated.
The reason for this query on Amazon/ Ebay the profit margin are less hence is possible to pay VAT on margin which is lower. Amazon/ Ebay has high turnover... less margins hence thinking is it worth . can VAT be reduced ?
These are Internet retail sales to USA individual and not business. Hence vat is charged. Is this correct to charge Vat?
Bhavash, thank you for your reply.VAT is charged on goods exported to individuals in the EU . If goods are exported outside the EU (individuals or businesses), VAT isn’t charged. You can zero-rate the sale, provided you get and keep evidence of the export, and comply with all other laws. You must also make sure the goods are exported, and you must get the evidence, within three months from the time of sale.Confirmation of this can be found herehttps://www.gov.uk/vat-exports-dispatches-and-supplying-goods-abroad
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.