Ways to avoid VAT

[Steve_g]

Hi All,

If one wanted to do so can VAT be lowered or removed from items for sale using any legal loopholes?

We pay out about 150k a quarter in VAT and compete mainly with non VAT registered Chinese companies that use UK distribution, it puts us at a real disadvantage.

Iv been told setting up and moving head office to Dubi will help with some things such as Corp tax but I didn't know if anything can be done about VAT?

I can only assume non EU businesses using UK distribution SHOULD be charging VAT but simply don't, I don't think they are using any kind of loophole, simply not paying VAT?

Cheers

Steve

 

[Newchodge]

They are breaking the law. the only way to lower or remove VAT would be by breaking the law.

 

[Deleted member 59730]

Move to the Channel Islands.

 

[Newchodge]

Move to the Channel Islands.

But if the supply is still in the UK, VAT would still be payable, wouldn't it?

 

[Steve_g]

I did wonder this but that would mean I would have to move my warehouse as I wouldn't be able to ship form the UK without charging VAT?

 

[Deleted member 59730]

But if the supply is still in the UK, VAT would still be payable, wouldn't it?

There are lots of businesses shipping from the CI to avoid VAT. I bought some printer ink, thinking I had a good deal, but the website price was without VAT. Shipped direct from Jersey.

 

[Gecko001]

VAT is purely a consumer tax. So think of it as being a tax collector on behalf of HMRC. You or your company are not the one that is being taxed, but the consumer - you merely collect it.

 

[Newchodge]

But, if done legally, does not VAT have to be charged on arrival in the UK?

 

[Steve_g]

VAT is purely a consumer tax. So think of it as being a tax collector on behalf of HMRC. You or your company are not the one that is being taxed, but the consumer - you merely collect it.

Sounds simple but we generate so many sales and pay so much import tax and ship to non EU and EU so its really hard to work our VAT out until the data is compiled for the VAT return so we never really know what to put aside

Would the products have to be shipped from C-Islands? or could a work around be used such as routing items?

 

[Gecko001]

There are lots of businesses shipping from the CI to avoid VAT. I bought some printer ink, thinking I had a good deal, but the website price was without VAT. Shipped direct from Jersey.

Was it recently?. I thought that loophole had been closed 3 or 4 years ago.

 

[lesvatadvice]

The Channel Islands became the location for many retailers, who took advantage of / abused the LVCR (Low Value Consignment Relief), which affected both VAT and Duty. Thresholds have changed over the years; especially as the Government realised the abuse, the thresholds have been gradually reduced.

 

[UK Contractor Accountant]

Yes-sell cycle helmets/safety wear, baby & children's clothing/footwear.