import duty and vat question

[getstock]

Hi all,

my 1st post here!

I am looking to import goods from australia to sell in the EU, my question revolves around vat.

My scenario is this:

I have paid my import duties and have the goods
I sell to someone in the UK and charge VAT

So what happens to this charge at the end of the financial year? Do I have to pay this to the governement?

Probably a very basic question!

[RAL]

First you need to clarify whether you are vat register.

If you are not vat register then you can not charge vat showing seperate item on your invoice to the customer. On the same time you can not claim the vat you paid at the entry of the goods into uk.

If you are vat registered then you can claim vat and you have to account for vat on your sales. Generally if you are on standard vat then you have to file quarterly vat return. Either you claim refund or pay over to HMRC every quarter.