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    1. Vivienne is offline

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      #1

      Free UK VAT and Import Duty Calculators

      Hi all. I was looking for information on free UK VAT and import duty calculators. Does anybody here know anything about them?

      I have been reading and checking out with other resellers but dont seem to have a clear consensus on what the term means.
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    2. Savannah is offline

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      #2
      Free UK VAT implies zero-rated goods and services or goods that are eligible in theory for taxation, but the rate is 0%. The rules are usually very detailed and need to be examined with great care to determine whether free UK VAT is eligible in your case or not. You are allowed to reclaim VAT on any sales of zero-rated goods or services. It is, however, important to show the VAT information on the invoice. Enter the sales transaction of the zero-rated goods in your accounts and include it in your VAT return, and only then are you in a position to claim back the VAT amount.

      Import duty calculators are tools that help you calculate the import duty applicable on specific goods when entering specific countries. Just input the data, and you get the result in seconds. It is important, though, to double-check the result with a more updated, authentic source, like the local customs office or tariff schedule. The calculators are great tools when doing a preliminary study of several goods and countries and when detailed examination is not required. If that research were to be done manually, it would take days.
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    3. moorejoseph is offline

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      Apart from the 0% category, there is also a category of free UK VAT goods when VAT must not be charged at all. These include goods outside the scope of VAT or those that are exempt. Therefore, no reclaiming is required on these. Businesses that are not registered for VAT also sell free UK VAT products as they need not charge it under law. There can be various interpretations of that terminology.

      Import calculators are such a lifesaver. It would be impossible to go through the tomes of information required to come to a figure, and even then you can’t be sure. You can check out New Duty & VAT Calculation | The Duty Calculator. I find it very simple and easy to use. They, of course, do not cover many products, and here I quote “a) goods that are perishable or hazardous, e.g. food or drink items, live animals, plants, chemicals, hair spray, cigarette lighters, and cleaning and toner fluids, b) goods that are subject to excise duty, e.g. tobacco products, alcoholic beverages, such as beer, wine, and spirits, and c) goods with import restrictions, e.g. unlicensed drugs, offensive weapons, firearms, explosives and ammunitions, and pornographic material.

    4. jackson is offline

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      #4
      Regarding the exempt free UK VAT goods, you don’t have to include them in your VAT accounts or charge any VAT at all, so there is no question of any reclaiming. In fact, you don’t have to register for VAT if you exclusively deal in this category of goods and services. That is the best. Getting VAT back is a lot more iffy because people need to keep track and file all the paperwork. Goods and services that are exempt from VAT or free UK VAT include:

      1. Doctor and dentist services (Lord knows why).
      2. Some specific training and education categories.
      3. Insurance, though I think there is some kind of premium tax that applies instead.

      I know of one VAT calculator on VAT Calculator

      It also shows how the calculation is arrived at, making everything real clear to the user. Others that I have used just magically give you a figure, which I don’t find so useful.

    5. moorejoseph is offline

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      #5
      There is also a category of free UK VAT goods and services that are outside the scope of the VAT legislation. Here again, there is no need to register, charge, and for that matter, reclaim any VAT. This applies in the below cases:

      1. When you buy or sell outside the European union.
      2. When you receive money from what is a hobby or leisure activity.
      3. When you buy and sell for a hobby. (This can surely be misused; I wonder how they manage to differentiate.)
      4. All donations given freely where the donator does not receive anything in return.
      5. All statutory services and fees like congestion charges or MOT testing.
      6. All low-cost welfare services that charities perform.
      7. All toll payments received for bridges, tunnels, and roads that are under public administration.

      There must me more categories, but the above, I’m sure about.

      Regarding import duty calculators, you need to have the shipping as well as all insurance rate information in hand; only after you input that will you get an accurate estimate as import duty is calculated after adding those costs to the product value. Plus, some items are pretty debatable, like food and animal products, so you may want to avoid using a standard off-the-net import calculator for those.

    6. Savannah is offline

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      #6
      You should understand that VAT or value added tax is basically a consumption tax that is rendered by various governments in different forms. Some apply it at the wholesale level, others at retail, and some at both. There is really no international standard as of now. In the UK, the HM revenue and customs are responsible for determining a lot of what is VAT exempt. Even foods made for human consumption are VAT exempt with the exception of confectionery, savory snacks, potato chips, food for catering out takeout, ice creams soft drinks, and mineral water.

      There is also no clear rationale that helps us know what free UK VAT is and what is not. One just has to find out and keep their fingers crossed hoping it stays on the free UK VAT list. These keep changing, you know.

    7. moorejoseph is offline

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      #7
      You will be best off not getting VAT registered if you can avoid it. That is really the simplest solution.

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