When buying bulk from a supplier say in china am I right that you don't pay VAT?

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What the hell, serious reply since I've just imported a car from Japan and all

You pay the shipping costs, then you pay the duty, which I'm pretty sure is 10%, on both the item itself AND the shipping costs, then you pay the 15% VAT on the total value of everything (ie. item, shipping and duty)

I don't see how importing "commodities" is any different from importing consumer goods. What the hell is a "commodity" anyway?

Stuff like Parcel Force fees probably isn't going to apply if you're doing this as proper business freight, you'll need to arrange (or pay an agent to arrange) the whole clearing the items through customs yourself. I assume you're just going to be bringing the items in in one more more shipping containers.

Don't forget to factor in the costs of a lorry to haul your container from the docks to your distribution centre, oh and the port I used charged a £200 fee just for landing my damn container there, and if I was to leave it there for more than 5 days I'd have to pay storage fees too.

As for what happens to the container, I have no idea since I had an agent doing stuff for me, if it's not yours then someone is going to want it back, and you'll probably have to pay for that run by lorry too.

Also don't forget that if these Chinese made consumer goods turn out to be crap and someone gets electrocuted, you'll be liable as the UK supplier. Do they even pass the relevant EU safety regulations? will they come with a UK plug fitted?
 
Lum said:
What the hell, serious reply since I've just imported a car from Japan and all
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Take a look at the topics started by dvdbunny in the past, you'll find everything from "writing a book, how do I get it published" to "how do I become a male model", a new moneymaking idea every few weeks.
 
I didnt think vat was payable on old cars just newish ones, old might mean 10 years though

People like the armed forces get a nice deal on such things I believe, maybe the next thread should be how do I become a commando
 
cheets64 said:
He has done nothing wrong to be banned.
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My view is that all he posts is spam. If there was a point to any of his posts i wouldnt mind, as this is the general discussion forum after all. I just find it stupid that he asks for help and people do help him, then the next day he compleatly ignores everyone who put in the time to answer him with help, and just moves on to a new silly question which will yet again be irrelevent a day or two down the line.
 
You have exclusive rights on a product from China and you're the sole distributor yet the global and national buyers who don't have to rely on distributors won't touch this ... this tells you nothing?

Do you know what an "exit pipeline" means? Because you either are or are about to become one.
 
You will pay VAT on whatever it is.

And you can claim that back, but only if you are VAT registered.

I.E

You buy £100 of stuff
15% VAT, you pay $15 to HMRC so £115 in total costs.

You sell it for £200 and charge 15% VAT so get £230 paid to you.

£30 of that goes to HMRC, but then you can claim the £15 back of what you paid in the first place, so you only pay a total of £30 (15 + 30 - the original 15).

In essence you end up paying 15% of the final sale to HMRC, but it's more complicated than that when you actually do it.

You should just assume that you will have to pay VAT, something that they advertise to you for £100 will actually be around £120 after VAT, excise and handling.

Then charge price in exc vat as all company>transactions are done it, and whatever extra vat price you charge goes to HMRC.
 
All your questions answered

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I know what it is.....

Sony's Stupid Piece of ******* **** That Doesn't ******* Work.

I would link to it, but there is the occasional swear word in the video, but if you don't get easily offended, search YouTube for "ITtk_GjVkSI". :D
 
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