Can I claim VAT, if I make a purchase over 2000GBP from Ebay or any other country ?

[vermaniv]

Hello,

My company is registered under the flat rate VAT scheme and I looking forward to buy an Ultrabook and a Tablet however the one I want is only available in US OR in some European country. I might have to buy from ebay.com or some vendor who is registered as a company in other country.

1. I was wondering if I make a purchase which is over 2000 GBP, will I be able to claim the VAT ?
2. I have noticed on ebay that some sellers in US sell equipment’s Internationally via the “Global Shipping Program”, on which they charge Custom and Expenses beforehand with the purchase – will this be considered as a Business Asset expense, if the answer to the first question is, No?
3. If I buy a laptop from overseas but pay the custom separately here in UK, will this customs be considered as a business expense ?

Thanks.

[northernladuk]

Do these places you are going to buy from actually charge VAT for you to reclaim?

[stek]

Do these places you are going to buy from actually charge VAT for you to reclaim?

This is the odd thing I think - no they don't, but HMRC do on import if applicable - so is that reclaimable?

[northernladuk]

This is the odd thing I think - no they don't, but HMRC do on import if applicable - so is that reclaimable?

Not on the same invoice so would say not.

[stek]

Not on the same invoice so would say not.

Me too!!

[TheCyclingProgrammer]

Not on the same invoice so would say not.

It applies to the same single purchase though, so I'm not sure how that would be relevant. The only difference between purchasing from a foreign supplier and a UK supplier is that in the latter case, you pay the gross to the supplier and they give HMRC the VAT and in the former, you pay the net to the supplier and you give the equivalent VAT to HMRC. The total cost of the single purchase is the same.

OP should check with their accountant, but I'd say if the net price + the relevant acquisition VAT totals over £2000 you should be able to claim it.

[ASB]

The invoicing elements should make no difference. It is whether it is a single purchase. There is some reasonable guidance in the scheme notes.

My concern would be it talks about vat. Imports of goods Involve the reverse charging of acquisition tax whch goes in a seperate box etc. I am sure hmrc will clarify.

The frs is only intended to reduce admin. There are many circumstances in which it can disadvantage a user.

[TheCyclingProgrammer]

This seems like one of those questions that could be easily answered by a quick call to the VAT helpline. Ring them, ask them if the "£2000 inc VAT" rule includes acquisition VAT and if they say it does, get a call reference and claim it.

[Jessica@WhiteFieldTax]

Ebay is a bit irrelevant, as its a trading platform not a seller.

The answers depend on whether (a) vendor is EU or non EU (b) vendor is a business or private individual.

AFAIR the flat rate guide on HMRC web site covers the treatment of acquisitions where output tax is due on acquisition.

Its not something that comes up every day, but with full facts your accountant ought to be able to check and advise with relative ease.