Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

Calling all tax experts!


Chrisplym

Recommended Posts

There has been a question on my mind for a little while now - at what point does someone need to be VAT registered?

I believe that you can sell goods or services to a value up to £85,000 without being VAT registered. I assume that silver and platinum is included as they are VATable, but what about British gold coins? British gold coins are exempt of VAT, but does their sale count towards the £85,000?

If someone could provide some clarification then that will be much appreciated.

Many thanks.

 

Link to comment
Share on other sites

41 minutes ago, Chrisplym said:

Thanks for your answer Seasider. So VAT exempt gold coins wouldn’t count towards the total. Good news.

And of course you never quite managed to sell more than the VAT limit - simple pirate logic.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

Link to comment
Share on other sites

@Chrisplym

In no way is the following formal advice, just what I went through. 

You are spot on that if you TURNOVER more than £85,000 in any rolling 12 month period then you must register for VAT. This is rolling remember, not a particular tax year or accounting year. 

You calculate your VATABLE turnover only for this calculation. The tricky bit is working out what is VATABLE. 

A common misconception is that sales made to customers outside the EU (where there is 0% VAT) is not counted. This is not the case. There are three main categories for VAT:

1) Vat is applied at either standard, reduced or zero rate (20%, 5% or 0%) These are all VATABLE and count towards your threshold. 

- Example is basically anything you sell. Even a US customer that pays 0% - that counts for your VAT threshold as it is Zero Rated rather than exempt

2) Exempt from VAT all together - NOT VATABLE

- Example is investment gold. There are some criteria that are needed to meet this but it is entirely possible to turnover millions of pounds and not have to bother registering because all of your sales are EXEMPT from VAT. If you did this kind of high volume I would imagine HMRC would get in touch and ask for proof you are trading in exempt goods, but it is not a requirement to register

3) Outside the scope of VAT - NOT VATABLE

- Example is if you have goods outside the EU and they are drop shipped to customers. So, if you had a warehouse in the USA and you had customers buying items that were already in the USA and someone sent them out on your behalf then this is just outside the scope of VAT.

Tot up all your VATABLE sales and if they total more than £85,000 you need to register. 

Hope that helps!
BYB

Visit my website for all my Hand Poured Silver: http://backyardbullion.com

And check out my YouTube channel 

https://www.youtube.com/backyardbullion

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use