Thread: OT - UKIP
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Dennis@home Dennis@home is offline
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Default OT - UKIP

On 18/02/2015 10:04, john james wrote:


"Dennis@home" wrote in message
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On 18/02/2015 00:06, john james wrote:


"Dennis@home" wrote in message
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On 17/02/2015 21:57, john james wrote:

I didn't commented on that, just pointed out that some
exports, particularly by small exporters, would be easier
if Britain was outside the EU because then the exporters
would not have to bother with the EU requirements on
charging the VAT due in the country it is exported to
with intangible stuff as opposed to tangible goods.

What VAT, its only the EU that charges VAT not the rest of the world.

That is not correct. Quite a bit of the rest of the world does charge
a VAT
tho they don't all call it that. Its a VAT in the sense that it
applies to both
goods and services and applies to the value added with each transaction.


VAT is what we are required to charge when selling to members of the EU.


Yes.

We are not required to do any of that stuff when exporting to elsewhere.


But if Britain chose to leave the EU, an exporter would not be
required to charge the VAT that applies in the buyer's country
and forward that VAT collected to the buyer's country.

You may be charged import duty by the other country if they are trying
to restrict their imports just like the EU does.


They dont do that to restrict anything, they just collect the VAT that
is due.


You still have to pay VAT, duty is an additional cost that is added.

http://www.dutycalculator.com/countr...nited-Kingdom/

The duty is there to restrict buying goods from overseas rather than
from the EU/UK.


In other words its collected on entry to the country, not by the seller.

And it isn't possible for the EU to do it like that, because goods
that move between EU countries dont go through the same
customs system as goods that come in from outside the EU.


The rules don't allow you to add duty to goods bought from inside the
EU. You have a "level playing field" (unless you are French).


And with the intangibles being discussed, the VAT that is due
can not be charged by customs, because intangible transactions
never go anywhere near customs, even with imports from outside
the EU. That is why the change was made at the start of the year
to force the exporter to collect the VAT and send it to the buyer's
country.


What's that got to do with anything about the UK exporting to other
countries outside the EU?


Exports to the EU would be rather harder if we were not in the EU as
they try to block imports for stuff already made in the EU.


That isn't correct either, Britain is currently free to import lots
of stuff from China and the US that is currently made in the EU.


So I am imagining the duty charged on imports fro outside the EU?


There is no duty on quite a bit of the imports.


There is on a lot of it, the government just doesn't think its worth
collecting on small personal imports, the same with the VAT. However if
you cross the threshold and they notice you will be charged duty + VAT +
admin fee.