Sky Digital VAT Refunds for Channel Islands / Isle of Man

noh

Moneyineptitude wrote: »

Even when VAT is not payable in the Isle Of Man /Channel Isles? Should the OP now approach HMRC for a refund then?

The OP lives in the Isle of Man.
VAT is due on goods and services supplied to IoM by UK companies.
See link
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000130&propertyType=document#P109_7691

londonTiger

noh wrote: »

The OP lives in the Isle of Man.
VAT is due on goods and services supplied to IoM by UK companies.
See link

http://customs.hmrc.gov.uk/channelsP...ment#P109_7691

link doesn't work. I assume the "vat free" offer is technically those offers where seller will reduce their prices down as if no VAT was charged? Like you see in car adverts "no vat"

noh

londonTiger wrote: »

link doesn't work. I assume the "vat free" offer is technically those offers where seller will reduce their prices down as if no VAT was charged? Like you see in car adverts "no vat"

Fixed the link.
Yes I agree with what you say. The cost of the service has been reduced by 16.67% to make it the same price as it would be without VAT.
VAT is still applied to the bill. No refund is due of past payments as VAT was and is correctly applied.

Peter999_2

londonTiger wrote: »

Not true, VAT registerted businesses are in effect tax collectors. Every penny of VAT that is invoiced and collected is handed over to HMRC**.

I think in OPs circumstance their computers/system isn't designed to deal with channel islands situation so they just reduced the price to a lower rate as it's simpler. They have decided to just absorb the VAT anyway even though they shouldn't need to.

**Minus input VAT (VAT paid on goods and services the business pays for).

This is not always true. My business collects VAT at 20% but I only give the HMRC 13.5% and get to keep 6.5%.

I can't claim the VAT back on items bought for the business though.

londonTiger

Peter999 wrote: »

This is not always true. My business collects VAT at 20% but I only give the HMRC 13.5% and get to keep 6.5%.

I can't claim the VAT back on items bought for the business though.

how comes?

Peter999_2

londonTiger wrote: »

how comes?

Its called the Flat Rate VAT scheme. I am in effect a tax collector and the HMRC pays me to collect the tax.

It's explained here :

http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

and a plain english explanation here :

http://www.sjdaccountancy.com/about/flat_rate_vat_scheme_guide.html

londonTiger

Peter999 wrote: »

Its called the Flat Rate VAT scheme. I am in effect a tax collector and the HMRC pays me to collect the tax.

It's explained here :

http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

and a plain english explanation here :

http://www.sjdaccountancy.com/about/flat_rate_vat_scheme_guide.html

ok gotcha. different method but meant to simplify things for you.

You are still paying vat at 20% but instead of accurately accounting for everything HMRC allows you to total everything up and keep a percentage based on your expenditure.

Peter999_2

Sort of, except the good thing is that I don't need to buy anything as I'm a consultant so the 6.5% is pure profit.

londonTiger

no, if you were doing VAT the normal way you would just have handed over 20% to HMRC and then HMRC would have refunded you 6.5%.

You would pay the 6.5% up front on your supplies, and you would collect 20% on sales Hmrc will ask you to pay the 20% less your 6.5% you already paid on supplies.

[Deleted User]

I doubt this thread is going to help the OP in getting any historical refunds of his VAT payments...:D