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bigduckontax, Accountant
Category: Tax
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I buy hair produects from china and do not pay VAT on purchases. I

Customer Question

I buy hair produects from china and do not pay VAT on purchases.
I sell the products on-line and dont charge VAT.
As I am registered for VAT do I need to pay VAT on sales as I didnt charge VAT online.
Total value of sales 32,467.97
Total value of purchases and all other inputs 38,892.55
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
When you buy are the goods imported to the UK?
Customer: replied 1 year ago.

Yes the goods are imported into UK from China

Expert:  bigduckontax replied 1 year ago.
On import Customs may apply Import Duties and VAT also, although they often do not do this. The Import duty forms part of your costs of sales and the VAT is input tax which can be reclaimed quarterly in the usual manner.
As you are registered for VAt and making sales, assuming that these are within the UK then you should be accounting for VAT at the standard rate. If you are exporting then VAT is still applicable, but at a rate of 0%.
You do, I fear, have a lot of back tax which must be accounted for. I am so sorry to have to rain on your parade.
Customer: replied 1 year ago.

Thank you. I just need further clarity.

I order the products as stated from abroad and do not pay import duty or VAT om the purchase.

The goods are sold on-line in UK.

I didnt include VAT on sale.

Im I liable for VAT because I am VAT registered?

Expert:  bigduckontax replied 1 year ago.
Indeed you are, as I said you have a lot of back tax to calculate, sorry.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3105
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Watch out for Import Duties and VAT in the future; you never know!

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