VAT Question - Help Please

[aqls]

I had similar (VAT related) trouble and took it up with Sedo nearly a year ago.

They still don't understand the question.

-aqls-

 

[olebean]

If Sedo are charging VAT on a sale, where a the seller is not VAT registered I am unsure if this is appropriate (putting it very mildy) and I would advise you take it up with VAT office...

It would be nice if Sedo clarifies the situation with a step by step scenario of costings rather than have this ambiguity

 

[sedo]

...fred - I just noticed your post after reading the VAT information Page (Sedo VAT FAQ's) on the Sedo website and I don't believe you are missing something.

Like you say - "that is wrong" - if I was to sell something and charge VAT (when I'm not VAT registered) I could get into serious dodo!

Sedo's VAT statement on their website makes no sense whatsoever!

So is there something fishy going on here?

A coherent Sedo response on this matter would be appreciated.

Regards,

Sneezy.

Hi Sneezy,

The information I posted in the FAQ was not all of the information. Above that section (which, again, I did not copy to the post), it is stated that that information will only apply to sellers, which are VAT liable. Sellers which are not VAT liable do not pay VAT. Perhaps I should have posted the beginning of the FAQ statement, which would have minimized concern:

VAT only applies if the seller is trading as a company which is VAT liable. If you are a seller trading as an individual, sales tax does not apply.

I do apologize for the confusion.

Kind regards,

Brad
[email protected]

 

[sedo]

If Sedo are charging VAT on a sale, where a the seller is not VAT registered I am unsure if this is appropriate (putting it very mildy) and I would advise you take it up with VAT office...

It would be nice if Sedo clarifies the situation with a step by step scenario of costings rather than have this ambiguity

Hi olebean,

VAT is only charged to sellers with a VAT number. If you are trading as a company, you are required to list a VAT number. The sales tax would then be automatically added to every sale.

If you are a private individual, you don't have a VAT number and VAT cannot be charged to you.

I hope this clears it up!

Brad
[email protected]

 

[sneezycheese]

...Thanks for the clarification Brad.

Regards,

Sneezy.

 

[fred]

Hi Sneezy,

The information I posted in the FAQ was not all of the information. Above that section (which, again, I did not copy to the post), it is stated that that information will only apply to sellers, which are VAT liable. Sellers which are not VAT liable do not pay VAT. Perhaps I should have posted the beginning of the FAQ statement, which would have minimized concern:

VAT only applies if the seller is trading as a company which is VAT liable. If you are a seller trading as an individual, sales tax does not apply.

I do apologize for the confusion.

Kind regards,

Brad
[email protected]

It's still wrong though.

In most cases, as the majority of buyers are not VAT liable companies, a domain you sell for £ 2,000 will net you £ 2,000. However, if the buyer is trading as a VAT liable company and requests a VAT invoice from you, you will then have to pay VAT on the sale in the country you are operating in (17.5% in the UK), thus your net gain would be £ 1,650.

It clearly states that if the buyer is not VAT reg'd, then a sale of £2000 would net £2000. This is wrong as if the SELLER is vat reg'd then they still need to charge the vat and therefore the vat status of the buyer is not important.

 

[netserve]

Not followed the last few posts fully so ignore me if this is the wrong end of the stick. Aren't sedos fees vatable?

ie if Sedo charge you £117.50, isn't £17.50 of that Vat that you can reclaim? (or some % based on German Vat)

My understanding of the EU vat regs is that if you sell to an EU based vat registered business that you don't charge vat them vat.
If you're vat registered and sell to an individual within the EU then you charge VAT.

I'm thinking that Sedo are charging 10% of your gross sale but in reality some of what they take from you is clased as their output vat which you can recover. (although as I've said above, if your vat registered within the EU they shouldn't be charging vat)

Sorry that all sounds confused but someone confirm they understand what I'm saying.

 

[olebean]

Hi olebean,

VAT is only charged to sellers with a VAT number. If you are trading as a company, you are required to list a VAT number. The sales tax would then be automatically added to every sale.

If you are a private individual, you don't have a VAT number and VAT cannot be charged to you.

I hope this clears it up!

Brad
[email protected]

Brad

If you believe that is the case I hope you can tell

a) if A seller based in the uk is invoicing under UK law
b) under which countries TAX Law is the VAT chargable

OB

 

[olebean]

It's still wrong though.



It clearly states that if the buyer is not VAT reg'd, then a sale of £2000 would net £2000. This is wrong as if the SELLER is vat reg'd then they still need to charge the vat and therefore the vat status of the buyer is not important.

Bump.........

 

[keys]

Sedo already know (or can easily check) if sellers are VAT registered, and
it shouldn't be too difficult to tell buyers when a price is subject to VAT.

Assuming that nothing changes,

VAT * registered sellers effectively pay commission of 11.75%
all others pay 10%

* using UK VAT rate

However, if Sedo charge VAT on commission then there is almost no difference overall.