"VAT free orders from the UK?" Topic

Some manufacturers knock the VAT off their retail prices for North Americans, which I really appreciate since it just about covers the added expense of international shipping (typically 25% or more). Yet I see others than either do not, or do not appear to do so.

Is it a hassle for UK companies to offer products VAT free outside of Europe? If they don't pass it on to their customers, are they getting higher profit margins?

Mind you – I don't begrudge profit in the industry. Just want to know what to expect as a customer and whether it is appropriate to ask for the VAT to be dropped from an order. I asked a retailer about VAT last week and didn't get a reply – so wondered it it was touchy.

Small firms do not need to register for VAT: in that case they do not levy it so can hardly not levy if for non-EU customers.

Once UK companies have a turnover in excess of £82,000.00 GBP then they have to become VAT-registered and include VAT in all of their prices. These companies can then deduct the VAT for customers outside of the EU.

Companies can also choose to register for VAT voluntarily, usually so that they can reclaim any VAT they're are paying on materials/supplies into their business. There's not that many of these in wargaming that I know of though.

So, companies under that £82.00 GBPk threshold generally don't have any VAT in their prices and are unable to deduct it for you.

PS: Companies that are VAT registered should have their VAT number shown on their website somewhere.

If their turnover is below a certain threshold they do not have to register for VAT. If they are not registered they do not have to pay the tax or charge their customers.

If you are dealing with a small company this may be the reason you are not getting a VAT discount!

I'm not sure how prevalent this is now with far better online stores capable of easily calculating VAT and deducting it for overseas customers, but about 15 years ago I did know of a couple of companies who found it simpler to remove the VAT 'indirectly' by giving US customers free postage.

we do not charge vat, too small.

I know some big companies who do not give you the VAT back, Warlord Games for one,

Jules

Never got to order, but some years ago Essex said they deducted VAT for overseas customers.

Have been presuming that 15mmUK is using it to offset shipping as they are markedly lower than other UK companies.

Jules,

Funnily enough, Warlord are one of those companies I mentioned, who give you reduced shipping in lieu of the VAT refund. Warlord charge £5.00 GBP postage for a small order to the UK and $5 USD for the same package to the USA (larger orders are free).

It depends what the company is selling and to whom. The turnover must be £82,000.00 GBP of sales in the UK and EU. Sales outside those zones don't count to the VAT threshold. So if the company has big sales in the US and other non EU countries they can turn over a good deal more than £82,000.00 GBP and still not be required to register for VAT. That excludes pretty much all of the small to middle size businesses.

I always appreciated that Baccus shows both the VAT and non-VAT included prices on their website.

As a UK VAT officer for 32 years here's a bit more background. As stated above there is a turnover limit before a business needs to register for VAT, if the business isn't registered it cannot charge VAT and therefore cannot deduct VAT. The VAT number must be displayed on invoices if the company is registered and is 9 digits long in 3 4 2 format. VAT is nope chargeable on supplies of goods to anyone outside the EU (supplies of services are more complex and depend on the service), however the business needs to be able to prove that the goods have left the UK and gone to a customer outside the EU.

Both Front rank and Perry removes VAT, i guess we can take that as a sign their businesses are doing ok.

I know little about the expenses of running a medium to large miniature company but £82.00 GBPk is a lot of money considering i don't think there are that many employees in even the large miniature businesses?