kronoopus
New Member
Posts • 859
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October 2006
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VAT Question.........., by kronoopus on Jul 18, 2007 16:10:17 GMT 1, Maybe someone can shed some light on this topic for me as I am located in the US. How come when you buy art from some places in the UK, they will refund the VAT and others do not apply the VAT? I got a response from another gallery that artwork doesn't get the VAT applied. Any help would be appreciated.
Thanks.
Maybe someone can shed some light on this topic for me as I am located in the US. How come when you buy art from some places in the UK, they will refund the VAT and others do not apply the VAT? I got a response from another gallery that artwork doesn't get the VAT applied. Any help would be appreciated.
Thanks.
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VAT Question.........., by manchestermike on Jul 18, 2007 16:11:31 GMT 1, Which gallery?
It depends if they're VAT registered (turnover related)
Which gallery?
It depends if they're VAT registered (turnover related)
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kronoopus
New Member
Posts • 859
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October 2006
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VAT Question.........., by kronoopus on Jul 18, 2007 16:22:02 GMT 1, Do companies in the UK have to be registered?
Do companies in the UK have to be registered?
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VAT Question.........., by snakes on Jul 18, 2007 16:23:16 GMT 1, As you are from overseas (outside Europe) you are exempt from paying VAT as you are not a resident.
Say if you come to Europe on your holidays you can also claim back VAT on the items that you purchased under the Tourist Reclaim Scheme.
It seems that the USA is one of the only countries that does not offer nationals from other countries who are spending in the US the option of claiming their sales tax back!
As you are from overseas (outside Europe) you are exempt from paying VAT as you are not a resident.
Say if you come to Europe on your holidays you can also claim back VAT on the items that you purchased under the Tourist Reclaim Scheme.
It seems that the USA is one of the only countries that does not offer nationals from other countries who are spending in the US the option of claiming their sales tax back!
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VAT Question.........., by snakes on Jul 18, 2007 16:25:01 GMT 1, To find a fuller explanation go onto the HMRC website. It may help if you can navigate it!
To find a fuller explanation go onto the HMRC website. It may help if you can navigate it!
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kronoopus
New Member
Posts • 859
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October 2006
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VAT Question.........., by kronoopus on Jul 18, 2007 16:27:48 GMT 1, Thanks! But then why do some galleries "charge" the VAT and others do not? Do I have to talk to an accountant over there?!?!?!? LOL
Thanks! But then why do some galleries "charge" the VAT and others do not? Do I have to talk to an accountant over there?!?!?!? LOL
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VAT Question.........., by manchestermike on Jul 18, 2007 16:29:11 GMT 1, Because only companies with a turnover over a certain amount have to pay VAT
Because only companies with a turnover over a certain amount have to pay VAT
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VAT Question.........., by snakes on Jul 18, 2007 16:30:40 GMT 1, Most likely that some galleries are more professional than others, or have more clued up employees.
It is easier for them to charge the VAT as oposed to taking it off as that way they have less paperwork to contend with down the line.
Most likely that some galleries are more professional than others, or have more clued up employees.
It is easier for them to charge the VAT as oposed to taking it off as that way they have less paperwork to contend with down the line.
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kronoopus
New Member
Posts • 859
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October 2006
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VAT Question.........., by kronoopus on Jul 18, 2007 16:32:21 GMT 1, AHA!!!!! I got you. So, then it becomes the person's responsibility to pay the VAT on the items bought when it is purchased when the company is not VAT registered? Is that correct?
AHA!!!!! I got you. So, then it becomes the person's responsibility to pay the VAT on the items bought when it is purchased when the company is not VAT registered? Is that correct?
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VAT Question.........., by manchestermike on Jul 18, 2007 16:33:28 GMT 1, AHA!!!!! I got you. So, then it becomes the person's responsibility to pay the VAT on the items bought when it is purchased when the company is not VAT registered? Is that correct?
Not quite 
If the company is not VAT registered then there is ZERO VAT payable - VAT doesn't play any part
AHA!!!!! I got you. So, then it becomes the person's responsibility to pay the VAT on the items bought when it is purchased when the company is not VAT registered? Is that correct? Not quite If the company is not VAT registered then there is ZERO VAT payable - VAT doesn't play any part |
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kronoopus
New Member
Posts • 859
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October 2006
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VAT Question.........., by kronoopus on Jul 18, 2007 16:35:39 GMT 1, ok
ok
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VAT Question.........., by snakes on Jul 18, 2007 16:39:09 GMT 1, You definitely got me. You would really need to consult with the Revenue & Customs web site regarding this issue as such matters are far too complex for my small mind but i would think that it is the company's responsibility to ensure that VAT is charged. If they did not charge it then they would have to explain why not, eg. item exported to non EU country etc...
However, with the turnover that most galleries have (lots and lots and lots) you can be assured that they would all have to be VAT registered.
You definitely got me. You would really need to consult with the Revenue & Customs web site regarding this issue as such matters are far too complex for my small mind but i would think that it is the company's responsibility to ensure that VAT is charged. If they did not charge it then they would have to explain why not, eg. item exported to non EU country etc...
However, with the turnover that most galleries have (lots and lots and lots) you can be assured that they would all have to be VAT registered.
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VAT Question.........., by mose on Jul 18, 2007 16:41:13 GMT 1, It seems that the USA is one of the only countries that does not offer nationals from other countries who are spending in the US the option of claiming their sales tax back!
sales tax in the US is not national, so the USA as a country would not be expected to have a mechanism to offer foreign nationals the option of claiming their sales tax back.
It seems that the USA is one of the only countries that does not offer nationals from other countries who are spending in the US the option of claiming their sales tax back! sales tax in the US is not national, so the USA as a country would not be expected to have a mechanism to offer foreign nationals the option of claiming their sales tax back. |
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VAT Question.........., by a4mnt on Jul 18, 2007 16:48:02 GMT 1, If we buy art from the states, we don't have to pay their local sales tax, do we? But we have to pay VAT to our customs and excise when the item enters uk?
Correct?
Isn't US the same?
If we buy art from the states, we don't have to pay their local sales tax, do we? But we have to pay VAT to our customs and excise when the item enters uk?
Correct?
Isn't US the same?
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VAT Question.........., by snakes on Jul 18, 2007 16:52:21 GMT 1, Thats correct the UK side, unless the seller fraudulently enters an incorrect value on the Customs Declaration, which can be good for the buyer as it means little or no tax.
It can also be very bad for the buyer if the item goes missing then the amount specified is all that you can claim back for, unless you plan to admit taking part in a fraud.
Thats correct the UK side, unless the seller fraudulently enters an incorrect value on the Customs Declaration, which can be good for the buyer as it means little or no tax.
It can also be very bad for the buyer if the item goes missing then the amount specified is all that you can claim back for, unless you plan to admit taking part in a fraud.
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VAT Question.........., by mose on Jul 18, 2007 16:52:32 GMT 1, If we buy art from the states, we don't have to pay their local sales tax, do we?
If you buy the art and it is shipped out of the state purchased in, you will not be charged the local sales tax.
If we buy art from the states, we don't have to pay their local sales tax, do we? If you buy the art and it is shipped out of the state purchased in, you will not be charged the local sales tax. |
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adamtheant
New Member
Posts • 17
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July 2007
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VAT Question.........., by adamtheant on Jul 18, 2007 17:05:22 GMT 1, Im also intrested in claiming back the VAT. I moved out of the UK about 1.1/2 ago and I like the thought of getting some money back when I buy things now! The way I understood the way it worked is that you need to fill a VAT form from the vendor. Then you need to present this at customs, but I'm not sure how it works when you order through the internet or how you get the money ;D
Im also intrested in claiming back the VAT. I moved out of the UK about 1.1/2 ago and I like the thought of getting some money back when I buy things now! The way I understood the way it worked is that you need to fill a VAT form from the vendor. Then you need to present this at customs, but I'm not sure how it works when you order through the internet or how you get the money ;D
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Photoxtc
Junior Member
Posts • 2,495
Likes • 189
July 2007
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VAT Question.........., by Photoxtc on Jul 18, 2007 21:11:44 GMT 1, I'm in the US and I just got chared up the ass in VAT fees from a gallery... some charge some don't....
I'm in the US and I just got chared up the ass in VAT fees from a gallery... some charge some don't....
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VAT Question.........., by adrscib on Jul 18, 2007 22:26:37 GMT 1, if you buy from the UK and are located in an EU country ... the gallery has to charge VAT... however if the buyer has a vat number he is allowed to provide a valid eu vat number and gallery wont charge vat.. you can insist on that....
if you buy from the UK and are located in US, the gallery does not charge VAT, but on entry in the US you have to pay the local sales taxes.... so bascially you have to make an agreement with the gallery... 1) not to charge you vat, 2) to mark good as a gift with no commercial value and send you the original invoice in a seperate letter ....
when we import products from non-EU countries we do pay the VAT upon receipt of goods but we can claim it back (as we are in business) however if you are an individual you dont have this option and thus you will have to add a sizeable % to your purchase cost.
hope this helps.
if you buy from the UK and are located in an EU country ... the gallery has to charge VAT... however if the buyer has a vat number he is allowed to provide a valid eu vat number and gallery wont charge vat.. you can insist on that....
if you buy from the UK and are located in US, the gallery does not charge VAT, but on entry in the US you have to pay the local sales taxes.... so bascially you have to make an agreement with the gallery... 1) not to charge you vat, 2) to mark good as a gift with no commercial value and send you the original invoice in a seperate letter ....
when we import products from non-EU countries we do pay the VAT upon receipt of goods but we can claim it back (as we are in business) however if you are an individual you dont have this option and thus you will have to add a sizeable % to your purchase cost.
hope this helps.
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ocontemporary
Art Gallery
New Member
Posts • 20
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April 2007
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VAT Question.........., by ocontemporary on Jul 19, 2007 12:54:31 GMT 1, Hi, I might be able to help here - there is also a special vat scheme for works of art and antiques called the margin scheme, in which no vat is applied to the customer. This is based on how or where the work was originally produced or sourced, so why some pieces can have vat applied and some don't, from the same seller or gallery. Vat issues are always a bit complicated, again there's info on the margin scheme on the Customs website but any seller or gallery should be able to explain to you whether and why vat is applicable or not for a particular piece.
Hope this helps
Olivia
Hi, I might be able to help here - there is also a special vat scheme for works of art and antiques called the margin scheme, in which no vat is applied to the customer. This is based on how or where the work was originally produced or sourced, so why some pieces can have vat applied and some don't, from the same seller or gallery. Vat issues are always a bit complicated, again there's info on the margin scheme on the Customs website but any seller or gallery should be able to explain to you whether and why vat is applicable or not for a particular piece.
Hope this helps
Olivia
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