"Antenociti’s Workshop Ltd Now VAT Registered" Topic

A quick note just to point out where i got my maths a little bit wrong – you will actually see a 13% price reduction from the shown prices on the website, not 15%…the 15% is what you would have to add to your (VAT-less) price to get back to the UK full retail price.

Hopefully i will do a bit better when i start doing the actual HMRC returns!

Doesn't this mean that AW is taking a hit on how much they make per item, if 13% is now considered VAT?

Then again, the workings of the VAT are unfamiliar to me, beyond 'my discount for ordering from the US usually covers shipping'.

On the positive side, I think it's good news that a small company is making enough money to come to the attention of HM Customs, so congratulations to AW on that!

Being VAT registered works both ways in that the company can claim input VAT (i.e. that charged by their suppliers) against the amount charged to its customers and only pay the difference to HMRC.

e.g. Supplies have 15p VAT charged and sales have 20p VAT the company pays 5p to the government. To keep it simple (ha been there done that) you do not have to track each component just the totals.

Though the paperwork and regulations can be baffeling it is good to see a company reaching these levels in time of credit crunch.

Well done to you all.
Andrew
kings-sleep.blogspot.com

Its also good to see a company that is giving the overseas customers the VAT back instead of pocketing it itself.

Its reasonable when the shipping is discounted against the VAT benefit but there is nothing more annoying than those companies that charge overseas customers a flat 18% – 30% when you know they are making an extra 15% on your transaction already.

BravoX

Two things:

Most UK Wargames companies are not VAT registered, so they can't discount VAT because they aren't charging it.

The 15% "extra" they are making is not theirs, but the UK Government's and is paid to the Government each quarter. VAT Registered businesses merely collect VAT on behalf of HM Government, they don't keep it!

Mike

Well if they are VAT registered and then charge me GBP10 for a product they get to keep all GBP10 as its zero rated whereas if they charge GBP10 on a domestic order they must pay the 15% VAT to HMG….

So they do effectively keep it…..

Secondly this "most companies" argument gets trotted out time and again but seems to me if Antenociti is registered then so are some others as AFAIK Antenociti isn't one of the giants of the industry. From what I heard it was about GBP50k turnover to require registration, I reckon the 3 companies selling plastics 28mm probably did that with their first product alone, I am pretty sure Foundry are as well, probably could name a few others that I think must be doing enough business to be registered. So I think most of the companies that I do business with are registered….
But correct me if I am wrong…

VAT is a bit of a labyrinthine topic and gets very confusing very easily.

The threshold is 67K Sterling after which you must register. As Black Cat says this means that you now charge VAT from your customers but can also now claim back VAT charged to YOU (which you could not do so before). This means that if you get your supplies and items (resin, silicone, products) from companies hat charge VAT, then you can (in theory) claim that VAT back…. In simplistic terms it should make your products costs a bit cheaper (although it doesn't always work out like that).

You cannot charge non-eu people VAT, if you do so you are being a bit naughty…

However what some companies do is charge both EU and non-EU customers the same VALUE for an item, even though they are using different rates of VAT e.g.

For a mythical item worth £100.00 GBP

EU customer pays £85.00p + £15.00 GBP VAT = £100.00 GBP
Non-EU customer is charged £100.00 GBP + Zero VAT = £100.00 GBP

A company is perfectly entitled to do so and no laws are being infringed or broken.
You will know whether or not you have been charged VAT as it must be displayed on your invoice by a company that is VAT registered.

For the company concerned there is a balance between the VAT they are charged by their suppliers and the VAT they charge their customers:
If a company pays more VAT than it charges its customers then HMRC pay them back the difference.
If the company charges their customers more VAT than they are charged themselves, then they pay HMRC the difference (in effect they collect the VAT for customs and revenue!)

By NOT charging your non-EU customers VAT you are relying on the quarterly VAT balance being in your favour so that you can claim back the VAT on the item you just sold to the non-EU customer. If it isn't you lose out, if it is you recoup SOME of the value of the VAT.

That's more or less how it works although there are other options on VAT such as a flat rate 6% charge for companies turning over less than £250,000.00p pa – so there are other ways it can be dealt with.

Either way non-EU customers should not be charged VAT and if you are the invoice MUST show that you have been.

The EC Member States Where VAT is Chargeable are:

Austria
Belgium
Cyprus
Czech Republic
Denmark except Faroe Island and Greenland
Estonia
Finland
France, including Monaco
Germany, except Busingen and the Isle of Heligoland
Greece
Hungary
The Republic of Ireland
Italy, except the communes of Livigno and Campione d'Italia and the Italian Waters of Lugano
Latvia
Lithuania
Luxembourg
Malta
The Netherlands
Poland
Portugal including the Azores and Madeira
Slovakia
Spain including the Baliearic Islands but excluding Ceuta and Melilla
Slovenia
Sweden
United Kingdom & the Isle of Man

Countries & Territories outside the EC fiscal (VAT) area are:

The Aland Islands
Andorra
The Canary Islands
The Channel Islands
The overseas departments of France (Guadeloupe, Martinique, Reunion, St.Pierre and Miquelon, and French Guiana)
Gibraltar
Mount Athos
San Marino
The Vatican City
All other coutries that do not appear in the list above.

Sounds complicated, to your loyal fan base in the UK does this overall mean prices have gone up, down or stay the same?

I must say Antenociti offer the best range of modelling products on the market today, I get a very large percentage of my supplies from them.

Please keep up the good work.

Andy

By NOT charging your non-EU customers VAT you are relying on the quarterly VAT balance being in your favour so that you can claim back the VAT on the item you just sold to the non-EU customer. If it isn't you lose out, if it is you recoup SOME of the value of the VAT.

Careful!

You can only claim back the VAT levied on the stock or the materials that went into the items you sold. You do this on the date of purchase, so you get the VAT back immediately and is not dependent on the sale of the item.

If you then sell outside the EU then the sale is exempt and VAT is not levied nor recorded. There is nothing to claim back.

If you don't sell the item then the recovered VAT is offset against the VAT due on your EU sales.

Welcome to the world of serious cash flow management ;-)

--
Martin Stephenson
Vexillia: Wargames Miniatures & Accessories
vexillia.ltd.uk
Personal web log
vexillia.blogspot.com

Sounds complicated, to your loyal fan base in the UK does this overall mean prices have gone up, down or stay the same?

It hasnt changed a thing Andy – we decided to keep the current prices on everything and absorb/deal with any tax issues at our end.

(as martin shows it can get messy)

(non UK) EU customers with a valid Euro-Vat number can avoid paying the VAT by submitting their euro-vat number on checkout…that really only affects companies though.

Good luck, sounds horrible to me :)

If your sales order system is good then it does the work for you and you just have to type a few numbers in to the Internet site and MR Brown and Co take their pound of flesh.

Being VAT registered has it pros and cons it's great what extra bits you can get back.

Welcome to the club guys it is a select few of us who are registered.

Jules