Hypothetical question

[Biohazard]

I can't believe the government can dictate how much you can sell something for. Shows you how bad this country is nowadays I guess.

No, it means you can't deliberately under value goods to evade duty.

 

[Biohazard]

Edit - How come you don't pay vat when you sell something on ebay?

"The European Union issued a directive last year making digital services collect VAT on service fees from sellers who reside, have a permanent address, or are established in the European Union. This means that we will collect VAT on all seller fees - including listing and final value fees and fees for subscription services - starting on 1 July 2003.

Business sellers who submit a valid VAT identification number and satisfy the other requirements of the business registration process can register for a VAT exemption on eBay fees and will not be charged VAT on eBay fees."

 

[Energize]

No, it means you can't deliberately under value goods to evade duty.

You've already bought the goods and paid tax once, so yes it does show how greedy the government is. You should never have to pay duty on something second hand. The idea that you can sell or aution something, and it ends up selling for below it's market value and then the government says "thats not high enough you must pay more tax", is disgraceful.

 

[Biohazard]

You've already bought the goods and paid tax once, so yes it does show how greedy the government is. You should never have to pay duty on something second hand. The idea that you can sell or aution something, and it ends up selling for below it's market value and then the government says "thats not high enough you must pay more tax", is disgraceful.

Businesses buying and selling goods can usually recover the VAT they are charged on their stock as input tax. But if you obtain most of your stock from members of the public who are not VAT registered or from other dealers using the Margin Scheme, you will have no VAT to recover. The Margin Scheme means that you still charge VAT but only on the value you add to the goods. By calculating VAT on the margin, the scheme therefore avoids double taxation as second-hand goods re-enter the economic cycle.

 

[Brum Man]

Missing the point...

What he's talking about is the deliberate selling of a good under market value to evade any duty being paid on it, which is tax evasion not selling something to get rid of it quickly etc.

 

[Dr House]

Some interesting posts, also I know it’s not relevant to the topic but gift tax is really unfair, the money has already been taxed when earned in the first place. Why should it be a second time? Same goes for inheritance tax.

 

[Vonhelmet]

Edit - How come you don't pay vat when you sell something on ebay?

You have to sell more than ~£60k of taxable supplies in a year to be registered for VAT. I think it's £62k this year.