V.A.T. (T.V.A.)

[janda]

Does anyone know if I was to set up a import company (or even just bought goods in the UK to resell) but paid VAT on goods in England and sold same goods to a French trader / shopkeeper would I also need to charge the French TVA ?

With thanks

Janda

[Eslier]

It depends very much on whether your yearly turnover is below the TVA threshold.

If it is below, then in theory, yes, you should be able to do just that but, depending what the items are, you might need to check this out with  your accountant. For example, there is no VAT in  the UK on children's clothes but  TVA is chargeable  in France, hence, this might be a problem.

If your turnover exceeds the TVA threshold (most likely if you are intending to earn enough to make the whole thing worthwhile with social charges etc.) then you will need to charge TVA on items sold as applicable. This isn't such a bad thingas, if you are selling to shops other businesses, they will almost certainly be TVA registered too and therefore won't have to pay it - which makes your sale price cheaper. If you are registered for TVA then you shouldn't have to pay UK vat on items despatched from the UK to France but claiming the vat back on items you've purchased yourself in France is a whole lot more difficult.

If you are keen to go ahead then discuss all this with your accountant, and remember it is illegal to trade, or even advertise, until you have submitted your business registration to the Chambre de Commerce.

[Iceni]

AFAIK (but you need expert advice not the public bar of the Dog and Duck)

1. If you are not registered for VAT in UK, you would not be able to recover that VAT but then you would not have to add VAT/TVA to your exports.

2. If you are VAT registered in UK then yr exports to France would not attract VAT if yr customer is TVA registered in France. If he is not then you have to charge him VAT/TVA though I cannot remember whether this is at UK, French or a composite rate

3. It is not possible for an importer in France to recover UK VAT.

Beware though the tax authorities are very wary of anyone operating on both sides of the Channel and arranging transfer prices to minimise tax/SS contributions.

p.s. I believe that VAT is chargeable on children's clothing in UK albeit at zero rate - see what I mean about expert advice ?

John

not

[Dave&Olive]

hi

    donot know if this will help but :- last year when we were still in the uk but owned our french house ,Iwas looking for a new saw bench , in the uk  because i gave a french delivery address they did not charge me vat ,this more than covered the delivery costs , a long story cut short!!!!

             dave

[Owens88]

>(but you need expert advice not the public bar of the Dog and Duck)

I wholeheartedly agree.

 

>3. It is not possible for an importer in France to recover UK VAT.

I think I disagree.

I thought the whole point of the harmonised vat and the complicated triangulation rules were that you CAN recover vat imposed in another part of the community. My UK vat form even has a specific line for it.

I don't mean recovering vat on the odd cup of coffee, but in theory you should be able to sell in NN, buy in MM and be based in LL and eventually the vat should net out.

Back to the top of the page. Good luck.

 

[BJSLIV]

A registered importer would normally not need to recover VAT, as they would buy without paying VAT in the first place. Someone like Dave (unless he is VAT registered)should pay VAT on his UK purchases, and it sounds as though his supplier has made a mistake that will cost them the VAT at their  next VAT inspection.

 

[Owens88]

Hi BJSLIV

(its not very easy to say that, with or without the whisky)

I may disagree, or I may not . The OP may not be a registered importer, whatever that is.

But I do think that there are different rules for 'within' the eu and 'outside'. The way you describe it was wholly valid when I was selling to New Zealand.

[Val_2]

We bought a morticer through Axminster Tools some years ago. If we had taken the van and collected from them in the UK we would have had to pay UK VAT at time of collection but because it was delivered here and we are TVA registered, we were zero rated having given both the supplier our number and informed the fisc here via our yearly accounts.