Author: John T

Distance selling on Ebay or Amazon – Do you need to be VAT registered in another EU country?

Cross border transactions are a very complex area within the Vat legislation. It is crucial that your business is fully understands the appropriate rulings in order to be fully compliant. Selling on Ebay or Amazon or other internet sites to none vat registered buyers are where the rules differ ie. once the seller has breached the vat threshold of the relevant EU country the seller must register for vat in that country. The thresholds are triggered from €35k – €100k on an annual basis. ie. in Germany the Vat forms must be completed in the German language. Each EU country have their own complex rules which must be adhered to under the EU legislation. The services we perform are: *  Register for Vat in the relevant EU Country; *  Assess each invoice for Vat compliance in the relevant EU Country;
    *  Prepare and submit the payment or claim;

Ttikkirou House

We are located a stone’s throw away from Manchester United’s ‘Theatre of Dreams’ Old Trafford the biggest football club the world has ever seen.Sir Matt Busby Way

VAT man clamps down on tax dodgers

A clampdown on tax dodgers was launched today as traders who have failed to register to pay VAT were given a chance to come forward.       Small businesses such as builders may not have realised their turnover was above the threshold of £73,000, while others could have been avoiding paying the tax, HM Revenue and Customs said.   More than 40,000 letters will be sent out over the next few weeks offering those who have not registered the chance to come forward before September 30 and avoid a maximum penalty.   HMRC said where traders have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100% charged to those who fall outside the opportunity.   HMRC warned it would investigate all those who fail to come forward before September 30, and substantial penalties or even criminal prosecution could follow.   Mike Wells, HMRC’s director of risk and intelligence, said: “Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by everyone.   “The aim is to make it easy for individuals and businesses to contact us, make a full disclosure of their income and face a reduced penalty on any tax owed.   To use the VAT initiative people and businesses must register with HMRC by September 30 to notify that they plan to make a voluntary VAT disclosure. 

JT Accountants

Tel. 0161 283 9639
Suite 1, Sir Matt Busby Way, Old Trafford, Manchester, M16 0QG.