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VAT on USA $1000 commercial sample
jago25_98
Posts: 623 Forumite
in Cutting tax
I received an item insured for ~$1000 from USA with a £110 VAT bill.
The item was marked `commercial sample`.
1) What is the limit for commercial samples? I know small things are not VAT-able but what is the limit?
2) The item was sent to my name at a business address where I am present sometimes but not employed. Would that lead to investigation if we tried to claim back?
3) The sample could be said for testing security devices on but other than that it seems unrelated to the business on the green tag import statement. Would this lead to investigation if we try to claim back? Proving it's a commercial sample (if we needed to) I think would be difficult for us.
4) Finally, what are the chances of the USA retailer getting in trouble if it doesn't actually qualify correctly as a commercial sample?
Do we claim it back through annual VAT return, or (perferrably) there is a form for separate claim-back. Which is best?
If we just try it and get it wrong are we running a risk of breaking a law and getting both ourselves and the supplier in trouble?
Thanks for an insights.
The item was marked `commercial sample`.
1) What is the limit for commercial samples? I know small things are not VAT-able but what is the limit?
2) The item was sent to my name at a business address where I am present sometimes but not employed. Would that lead to investigation if we tried to claim back?
3) The sample could be said for testing security devices on but other than that it seems unrelated to the business on the green tag import statement. Would this lead to investigation if we try to claim back? Proving it's a commercial sample (if we needed to) I think would be difficult for us.
4) Finally, what are the chances of the USA retailer getting in trouble if it doesn't actually qualify correctly as a commercial sample?
Do we claim it back through annual VAT return, or (perferrably) there is a form for separate claim-back. Which is best?
If we just try it and get it wrong are we running a risk of breaking a law and getting both ourselves and the supplier in trouble?
Thanks for an insights.
Order of events: Banks lose our money -> get bailed out -> were inflating GBP to cover it -> now taxing us -> next will grab your funds direct -> things get really desperate to balance the books. What should have happened?: banks go bust and we lost our money much quicker
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Comments
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First question. Was it a commercial sample?0
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When we send or receive samples abroad we put the value down as a few pence.
It's a sample, so the cost is written off. We don't expect it back because it's an enabler for future business. The customer doesn't pay for it and we never issue an invoice.
Therefore, as the previous person, was it a sample, did you pay for it ?
As for 4) get in trouble with whom ? UK customs? That wont happen. Zero.
NB: I don't work in accounts.0 -
The item was paid for by trading our services for theirs
edit:: Correction. The item was paid for by trading my services for their product and sent to the business address I spend time at but am not an employee at.Order of events: Banks lose our money -> get bailed out -> were inflating GBP to cover it -> now taxing us -> next will grab your funds direct -> things get really desperate to balance the books. What should have happened?: banks go bust and we lost our money much quicker0 -
Then it was not a commercial sample. I think you must pay the VAT. The law says you should. Sorry, not what you want to hear but the VAT man is very aware of barter ... it attracts VAT, whatever the consideration.0
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