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    • sirrahking86
    • By sirrahking86 12th Aug 17, 2:18 PM
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    sirrahking86
    VAT payable on selling on online content
    • #1
    • 12th Aug 17, 2:18 PM
    VAT payable on selling on online content 12th Aug 17 at 2:18 PM
    I sell online media (powerpoint slides) via a teaching website. VAT is deducted from my selling price immediately. My earnings fall well below the VAT threshold and so I am not VAT registered.
    Do I still have the pay the VAT on selling these, can I claim the VAT back through my tax return?

    Thanks in advance.
Page 1
    • 00ec25
    • By 00ec25 12th Aug 17, 2:29 PM
    • 5,561 Posts
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    00ec25
    • #2
    • 12th Aug 17, 2:29 PM
    • #2
    • 12th Aug 17, 2:29 PM
    it is illegal to charge VAT if you are not VAT registered

    please explain who is "deducting" money and what they say that charge relates to. What are the T&C of the "teaching website" as to who is the actual product seller. The fact you sell digital media is also crucial as that brings the MOSS rules into play if the customers are in the EC
    https://www.gov.uk/government/collections/vat-moss-vat-on-sales-of-digital-services-in-the-eu

    have you checked the maths of the "deduction"? If you sell something for £10 and it includes VAT then the VAT amount is £1.66 because the £10 is really 120%.

    and no you cannot reclaim "VAT" through your tax return, you are not VAT registered and you can never reclaim VAT on the sales price. The whole point is it is a tax on the value of the sale and the customer pays the tax, the seller does not get to recover the tax!
    Last edited by 00ec25; 12-08-2017 at 11:10 PM.
    • antrobus
    • By antrobus 12th Aug 17, 2:33 PM
    • 15,297 Posts
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    antrobus
    • #3
    • 12th Aug 17, 2:33 PM
    • #3
    • 12th Aug 17, 2:33 PM
    I sell online media (powerpoint slides) via a teaching website. VAT is deducted from my selling price immediately. My earnings fall well below the VAT threshold and so I am not VAT registered....
    Originally posted by sirrahking86
    I believe that it is the "teaching website" that is charging the VAT. They would be VAT registered. They have to account for VAT on their sales. You then get (presumably) a percentage of the net proceeds. You are a supplier to that teaching website.

    ..Do I still have the pay the VAT on selling these, can I claim the VAT back through my tax return?
    Originally posted by sirrahking86
    No, you don't have to pay the VAT. That teaching website has already paid it to HMRC. And you can't claim it back, because it's not your VAT.
    • Altarf
    • By Altarf 12th Aug 17, 4:40 PM
    • 2,849 Posts
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    Altarf
    • #4
    • 12th Aug 17, 4:40 PM
    • #4
    • 12th Aug 17, 4:40 PM
    I sell online media (powerpoint slides) via a teaching website.
    Originally posted by sirrahking86
    OK.

    My earnings fall well below the VAT threshold.
    Originally posted by sirrahking86
    That depends on where your customers are and whether they are businesses or individuals.

    If they are individuals and are outside the UK but elsewhere in the EU then the VAT threshold is zero for those sales and you would need to register in each of those countries, even if you only made 1p of sales there.

    However the website you sell through should be taking care of that for you, by charging the individuals the VAT on the sale and accounting for it in each country.
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 12th Aug 17, 9:01 PM
    • 2,907 Posts
    • 1,659 Thanks
    TheCyclingProgrammer
    • #5
    • 12th Aug 17, 9:01 PM
    • #5
    • 12th Aug 17, 9:01 PM
    As others have said this kind of transaction is caught by the VATMOSS rules for digital content.

    This requires for you to account for VAT on sales to each country at their local VAT rate.

    To make life easier a lot of online platforms for selling digital content take care of this for sellers by acting as the principal seller in the transaction. This means that they account for the VAT instead of the actual content provider. I suspect that is what is happening here.

    What this effectively means is you need to take the additional VAT into account when setting your prices. The price you set on the platform is treated as the gross price and local VAT for each country will be deducted. You may want to consider increasing your prices to compensate if you can.
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