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Just confirming you got the follow up question I appreciate you may need to think about the VAT position but my follow up question hasn't appeared in this discussion yet
To repeat my previous response
a. for the Hong Kong company we have a UK account at HSBC for sterling payments. We have an Irish account for Euro payments. this latter bank feeds into HSBC UK account. Some money then goes to Hong Kong bank to pay suppliers in china other money goes to pay Amazon and the UK distributor (totally independent co.)
1. What I need to know is as we are selling world wide do we only register to pay VAT when we exceed the registration ceiling for each country we sell to i.e. total turnover maybe £150,000 or anything but providing we are below threshold turnover for VAT in each country we are OK? true or not
2 points of clarification. 2 observations and 1 last question
1. We do not have a depot in the UK. As mentioned in my post we either send goods to Amazon or for eBay purchases on line to an independent Co. that then packs and posts to the end user who are private individuals.(that company does it for many other businesses not just ours). This is just a fact and as such UK corporation tax isn't we understand incurred
2.We are obviously not distance selling because we based outside Europe and it does not apply.
3. . The disturbing point is that so far as we were aware and our obviously simple reading of HMRC guidelines and advise of other Chinese business operators rather than a UK adviser such as yourself, that as an offshore company we pay appropriate taxes for Hong Kong (which appears at least to be correct) and VAT at the threshold for the UK. Hence the original question asking for clarification as what counties threshold if we sell to more than the UK.
4. Depending on how you look at it, fortunately the Hong Kong company was only formed in late June with the idea that we would take over some smaller sole traders who have been selling on eBay etc (Europeans doing their thing from China who are now going back home and leaving China) , As so we have only just reached these high levels and done so within a very very short period by just taking on existing businesses.
Just 2 last questions:
Please confirm a) we need to register for VAT and this bit I now hope is true within one month of the end of the month in which we started selling to the UK and
b) this is the case for all European Countries
Finally Thank You in anticipation you have been concise and have answered questions that many "experts have avoided"
One problem with your advise is it maybe too good. I apologise in advance but I cant let you go just yet! Excellent service to be well recommended and i will post accordingly.
But we will be taking on the eBay sales and these items are sent to a Fulfillment Center other than Amazon. Unlike Amazon they do not deal with sales we will be dealing with that in China. So I guess as far as eBay sales are concerned we will in accordance with your guidance be paying VAT for eBay sales, However, from the Amazon reference we will at least not be paying Vat for their sales.
eBay operates from the Luxembourg, so no worries there for an HK company!