VAT post-Brexit

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peteroldracer
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VAT post-Brexit

Postby peteroldracer » Sun Dec 13, 2020 11:32 pm

Does anyone know the facts about members of UK-based clubs (in my case an online bridge club) after 31/12/20?
My sub is due Xmas Day and the form shows the subscription cost plus VAT. If there is no liability for VAT I am certainly not going to renew this side of Brexit!
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markwilding
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Re: VAT post-Brexit

Postby markwilding » Mon Dec 14, 2020 10:13 am

This has been discussed in the news recently. Non UK residents will not be able to claim back VAT paid when they return to their country any more so i suppose this covers your situation.

https://www.bbc.com/news/business-54228889

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peteroldracer
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Re: VAT post-Brexit

Postby peteroldracer » Mon Dec 14, 2020 11:00 am

Not really the case mark - I have never claimed VAT back as it has always been levied and paid within the EU. With the UK no longer in the zone will they not have to/be able to charge VAT to anyone not in the UK? The whole VAT on clubs has been a bone of contention with golf clubs for example, and there was the argument about bridge being a sport but this query surely will apply to any UK business trading with clients in a EU country....
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costakid
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Re: VAT post-Brexit

Postby costakid » Mon Dec 14, 2020 12:02 pm

I have been in import export business for years and we never have to charge vat on non EU sales. Once the UK is not in the EU for tax purposes after 31st of this month all sales should be nett of vat. Exactly the same as if you were in say China.

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peteroldracer
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Re: VAT post-Brexit

Postby peteroldracer » Mon Dec 14, 2020 12:19 pm

Possibly, just possibly a tiny benefit of Brexit! We shall see....
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Paddy Pumpkin
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Re: VAT post-Brexit

Postby Paddy Pumpkin » Mon Dec 14, 2020 11:12 pm

VAT is levied at the point of supply of the service

So say a UK company supplied a service to a customer in Australia then the UK tax man doesn't charge VAT but the Ozzie taxman does. Simple example I purchased a VPN subscription and the price differed based on my IP address (which I disguise with a VPN to place myself in a Hong Kong which has no VAT)

So the question is where is the service supplied in the case of the bridge club. Is it where the server for the online club located or where the user is at the time of purchase?

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peteroldracer
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Re: VAT post-Brexit

Postby peteroldracer » Mon Dec 14, 2020 11:34 pm

Interesting paddy: the server is in France, I am in Spain, the club is based in the UK....
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Re: VAT post-Brexit

Postby Paddy Pumpkin » Tue Dec 15, 2020 1:28 am

I should really read what I have written! I answered it and then unanswered it

VAT is at the point of service

So that is deemed to be where you reside. So Spanish VAT rate should be levied by the UK seller. Don't ask me where the UK club should then pay the VAT to!

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costakid
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Re: VAT post-Brexit

Postby costakid » Tue Dec 15, 2020 8:44 am

As it stands today if a uk company supplies a customer in the EU who is not vat registered then they charge vat. If the same happens but they are supplying a vat registered company they sell nett of vat.

If all of the above happens to a non EU customer you can supply nett of vat wether private or a company. That will all change in 2 weeks time.

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Re: VAT post-Brexit

Postby Paddy Pumpkin » Tue Dec 15, 2020 10:40 am

https://ec.europa.eu/taxation_customs/i ... ervices_en

Buying electronically supplied services online if the seller is established outside the EU or inside the EU the rules are the same
When buying electronically supplied services online, VAT is due.

The seller will charge the VAT rate applicable in the country where you are established, have your permanent address or usually reside.

Example: If a private person residing in Sweden makes use of a Japanese on-line library, Swedish VAT will have to be paid on the amount the Japanese company charges.

If the UK leaves with a deal.....then who knows. It will depend on the deal, but given the rules for NON EU seller are the same as EU seller I would imagine nothing will change, whether deal or no deal

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Re: VAT post-Brexit

Postby markwilding » Tue Dec 15, 2020 11:53 am

This sounds right to me. Before Amazon.es, I used to buy from the UK version and I was charged a slightly different price to the one advertised . When I asked them why, they told me I was down to the slightly VAT different rate between the UK and Spain.
Last edited by markwilding on Tue Dec 15, 2020 1:01 pm, edited 1 time in total.

olive
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Re: VAT post-Brexit

Postby olive » Tue Dec 15, 2020 1:00 pm

We have just had a tax refund of 5 euros 40 on an item bought from Amazon in the US over 12 months ago.

Nice surprise on a number of levels.


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