Big business creating £ & input to the economy...

Thrugelmir

IronWolf wrote: »

Second, on that £3.3bn we are collecting VAT, which dwarves any corporation tax we would receive on profits given Amazon is a low profit margin business.

Ebay is registered in Luxembourg for VAT. The rate there is only 15%.

vivatifosi

Thrugelmir wrote: »

Ebay is registered in Luxembourg for VAT. The rate there is only 15%.

I'd argue that there is an issue where services can be charged for from a different country (though I appreciate Lux is in EU and therefore a different issue).

My business now plays flat rate VAT, but when I first started I wasn't on a flat rate and my internet provider moved out of the EU, including its billing. Did they offer a reduction to users? No, they expected us to pay the same even though I could no longer claim VAT back through my business because business users were a small fraction of their customer base. Needless to say I changed ISP. There must be a way to charge VAT for a service where the service is delivered to the UK.

Thrugelmir

vivatifosi wrote: »

I'd argue that there is an issue where services can be charged for from a different country (though I appreciate Lux is in EU and therefore a different issue).

My business now plays flat rate VAT, but when I first started I wasn't on a flat rate and my internet provider moved out of the EU, including its billing. Did they offer a reduction to users? No, they expected us to pay the same even though I could no longer claim VAT back through my business because business users were a small fraction of their customer base. Needless to say I changed ISP. There must be a way to charge VAT for a service where the service is delivered to the UK.

Ebay charge their fees through an off shore company. An envitable consequence of the EU ( another topic) is a standardisation of tax rates to provide a level playing field. Eire has had low Corporation Tax rates for years. Hence why US companies base a lot of manufacturing plant there for supply into Europe.

vivatifosi

Thrugelmir wrote: »

Ebay charge their fees through an off shore company. An envitable consequence of the EU ( another topic) is a standardisation of tax rates to provide a level playing field. Eire has had low Corporation Tax rates for years. Hence why US companies base a lot of manufacturing plant there for supply into Europe.

Sorry, I was using EBay to demo an issue I had with a non-EU registration. I think there is little that can be done about VAT within EU, my thought was more that more should be done in terms of non-EU nations - as in can services be taxed somehow as imported goods now are. If that makes sense!

Incidentally I remember Ireland lowering their Corp Tax rates and the amount of inward investment that would have otherwise have come to the UK draining overnight. I think it was early to mid nineties???

Thrugelmir

vivatifosi wrote: »

as in can services be taxed somehow as imported goods now are. If that makes sense!

If I supply a service to a US Company (who has no UK presence) within the UK then that service is Vatable. I would bill the US Company plus VAT. Even though they are outside the UK.

Ebay runs its billing centre outside of the UK. So falls outside the scope of UK VAT.

Likewise Amazon market place.

kabayiri

vivatifosi wrote: »

Sorry, I was using EBay to demo an issue I had with a non-EU registration. I think there is little that can be done about VAT within EU, my thought was more that more should be done in terms of non-EU nations - as in can services be taxed somehow as imported goods now are. If that makes sense!
...

I'd strip it back a level even.

VAT to the consumer is just a consumption tax.

Shouldn't that be the same whether you deal with Amazon for a book or your local bookshop ?

Amazon have other ways in which they can outprice the small retailer, such as scale efficiencies.

But ultimately the value of the 'product' you receive is consistent in both cases, and should attract a similar tax?