- Original Poster
- #1
I am considering to start selling hardware to Non-EU countries.
I would like to use the most effective VAT vehicle and would appreciate if someone could answer my questions.
Firstly I would be reselling a product from a UK manufacturer to a let's say South American buyer. I am not a partner of the UK manufacturer, but they are grateful about me trying to resell their product. I am the contact to the buyer in South America. I would like to add 10% to the sales price of the UK manufacturer, but what happens if I sell the product without adding 17.5% and soon 20% VAT.
The scenario looks like this.
I am adding 10% to the product of the UK manufacturer which costs £40, in turn I am selling it to the South American buyer for £44. My first question is, can I avoid paying VAT to the UK manufacturer as a non-disclosed agent as it would cost me £48 to buy the product and would defeat the purpose of making money
.
Secondly, I would like to initially get the payment of the South American buyer going through my account before forwarding it to the UK manufacturer. Would I be able to do that as a non-disclosed agent without paying VAT of £8?
If the non-disclosed agent scenario does not work, is there any other tax vehicle I could use to sell to a zero-rated country outside the EU?
Best Regards,
Bee
I would like to use the most effective VAT vehicle and would appreciate if someone could answer my questions.
Firstly I would be reselling a product from a UK manufacturer to a let's say South American buyer. I am not a partner of the UK manufacturer, but they are grateful about me trying to resell their product. I am the contact to the buyer in South America. I would like to add 10% to the sales price of the UK manufacturer, but what happens if I sell the product without adding 17.5% and soon 20% VAT.
The scenario looks like this.
I am adding 10% to the product of the UK manufacturer which costs £40, in turn I am selling it to the South American buyer for £44. My first question is, can I avoid paying VAT to the UK manufacturer as a non-disclosed agent as it would cost me £48 to buy the product and would defeat the purpose of making money
.Secondly, I would like to initially get the payment of the South American buyer going through my account before forwarding it to the UK manufacturer. Would I be able to do that as a non-disclosed agent without paying VAT of £8?
If the non-disclosed agent scenario does not work, is there any other tax vehicle I could use to sell to a zero-rated country outside the EU?
Best Regards,
Bee
