UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax

I had a question about e-commerce tax, I am located in Dubai

Customer Question
Hello, I had a question about...
Hello,
I had a question about e-commerce tax, I am located in Dubai wanting to start an e-commerce cosmetic store online.
The warehouses I m using will be located in the USA and the products i'm going to buy at wholesale and sell are located in the USA, the other warehouse will be located in the Uk shipping to the EU, and all products are bought for whole sale from the EU. Where if anywhere do I need to pay taxes? I heard that in the UK i won t need to pay taxes unless I profit 70,000 pounds or more!! However, I'm not importing anything from outside the region, do I still need to pay tax?
Thank You!
Submitted: 2 years ago.Category: UK Tax
Show More
Show Less
Ask Your Own UK Tax Question
Answered in 5 hours by:
9/15/2015
UK Tax Professional: TaxVince, Accountant replied 2 years ago
TaxVince
TaxVince, Accountant
Category: UK Tax
Satisfied Customers: 965
Experience: Chartered Accountant >20 years + Qualified IFA
Verified

Thank you for the question.

Ask Your Own UK Tax Question
UK Tax Professional: TaxVince, Accountant replied 2 years ago

The £70,000 relates to distance selling. If you distance sell into the UK have to register for UK VAT if the value of your distance sales exceeds £70,000 in a year. If you’re outside the EU any sales you make to the UK aren’t distance sales and hence the £70,000 doesn't apply here.

Ask Your Own UK Tax Question
UK Tax Professional: TaxVince, Accountant replied 2 years ago

In your case your customers may have to pay UK import VAT on the goods when they arrive in the UK. They may also have to pay duty.

Ask Your Own UK Tax Question
UK Tax Professional: TaxVince, Accountant replied 2 years ago

The same applies to your sales across EU though each country may have different VAT rules.

Ask Your Own UK Tax Question
UK Tax Professional: TaxVince, Accountant replied 2 years ago

Just to add the following:

I guess your case is like most online sellers (from China, India, US) who sell across EU from Amazon or eBay with no place of business in the UK and you are not required to register for VAT or any other taxes in the UK. However the warehouse arrangement needs to be checked that its VAT/ any other tax proof. The basic idea is that the delivery terms should be such that the customer is the importer of record, in which case VAT registration would not be required in the UK.

My only advice is that before you engage in this activity, get a tax expert to write up some advise on how to set up the structure and to review each country VAT rules where you have substantial sales and file the advice for future reference.

Hope this helps.

Regards

Ask Your Own UK Tax Question
Customer reply replied 2 years ago
Thank you for explaining it in such a clear way. What if the products I am selling are purchased from wholesalers located in the UK, and I just sell in the UK, does VAT still apply for those sales?
UK Tax Professional: TaxVince, Accountant replied 2 years ago

Thanks for the reply. In that case you are trading in UK as you are getting supplies of goods from UK and selling in UK. Your suppliers will most likely charge you VAT for your wholesale purchases.

However regarding your sales, the VAT threshold for UK business for 2015-16 tax year it is set at £82,000. Hence you dont have to register for VAT if your sales are below this figure if you have a UK registered business. If you still operate from overseas office, you may also be caught by the Finance Act 2012 as explained HERE, hence required to register for VAT.

In any case you will find that its advantageous to register for VAT as you will recover the VAT charges you will incur from your suppliers (if your suppliers are UK based).

Ask Your Own UK Tax Question
UK Tax Professional: TaxVince, Accountant replied 2 years ago

The link above doesnt seem to work but i have pasted it here: http://www.buzzacott.co.uk/news/non-uk-businesses-required-to-register-for-vat

Ask Your Own UK Tax Question
Ask TaxVince Your Own Question
TaxVince
TaxVince
TaxVince, Accountant
Category: UK Tax
Satisfied Customers: 965
965 Satisfied Customers
Experience: Chartered Accountant >20 years + Qualified IFA

TaxVince is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

6,508 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

859 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

147 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
I am trying to file Ltd Company micro-entity accounts with
Hi, I am trying to file Ltd Company micro-entity accounts with Companies house and i keep getting the error message "shareholders funds must be equal to the total net assets (liabilities). We are a ve… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
I am requesting to my 10/19/2011 question: I'll be 65 in
Hi, I am requesting a follow up to my 10/19/2011 question: I'll be 65 in March 2012 and am probably going to get a Original Question URL: http://www.justanswer.com/uk-tax/5phxe-i-ll-65-march-2012-prob… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,508 satisfied customers
I'm doing the accounts for my sister who owns a micro entity
Hi Pearl, My name is ***** ***** I'm doing the accounts for my sister who owns a micro entity business company. Last year was the first accounting year and I laid an abrieved.online account. I'm about… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I have a UK/Australia tax question not social security. I
I have a UK/Australia tax question not social security … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
You recently (Nov 16th) answered questions in relation to
You recently (Nov 16th) answered questions in relation to CGT on the sale of a holiday home in France, for which many thanks. I do have a few more specific questions re. other allowable costs. These a… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
My father and step mother are both in separate care homes.
My father and step mother are both in separate care homes. They jointly own a house. My father has a state and occupational pension both of which are considered as sole his income by the local authori… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
I wanted to know if a uk limited company could lend me
I wanted to know if a uk limited company could lend me monies to purchase a property. I am not a director of the company … read more
Sam
Sam
Accountant
Higher Officer HMRC
6,508 satisfied customers
I don't have a social security question. I have a micro
I don't have a social security question. I have a micro entity account question. … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
I have been sent a letter from the tax - it seems my
I have been sent a letter from the tax - it seems my accountant has declared more subbies working for me than actually did, despite the fact that I sent off my subbies tax deductions every month after… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,508 satisfied customers
We have a holiday home in France which we have had for 23
We have a holiday home in France which we have had for 23 years and wish to sell. I need to know which costs for renovating it are allowable against capital gains tax.… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
I am a UK resident for tax purposes since 2012. I plan to
I am a UK resident for tax purposes since 2012. I plan to transfer to my 25 year old son who is a UK tax resident, this year a plot of land in my country of birth which i bought 23 years for the equiv… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
We are a us based company. We have a question about vat.
Hello. We are a us based company. We have a question about vat.Essentially we connect a client in the UK with a client who could be anywhere in the world.We handle the payments.We take money from the … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
This is a question for a Verified UK tax professional only I
This is a question for a Verified UK tax professional onlyI am a British national and an Australian resident for tax purposes since March 2016 (I have not been outside Australia since then and have a … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I am serving in Army. I was advised by HM Customes to use a
I am serving in Army. I was advised by HM Customes to use a UK414 to register my tax free vehicle when I bought it over from Germany, the same person is now telling me 1 1/2 years later that I have to… read more
TEAP007
TEAP007
Tax Preparer
Fully Trained Inspector of Taxes B1
759 satisfied customers
I get tax credits but have inherited money following the
i get tax credits but have inherited money following the death of my mum. Do i have to advise tax credits of this. Have given some money to other family and paid off debts. Not a lot left but not sure… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,508 satisfied customers
I am receiveing money from abroad, do i have to pay for Non
i am receiveing money from abroad, do i have to pay for Non Residential Tax Clearance Certificate? … read more
Clare
Clare
Solicitor
Bachelor's Degree
147 satisfied customers
I used to live in Ireland 4 years ago and set up my TIN
Hello, I used to live in Ireland 4 years ago and set up my TIN because I do world-wise freelance, however I've been consistently moving countries because I like to travel and wasn't aware on how to do… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
859 satisfied customers
I'm trying to submit abbreviated company accounts for my
I'm trying to submit abbreviated company accounts for my Cricket Club to companies house and not an accountant! Keeps coming up with the message "Current period: Members' funds must be equal to the to… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,062 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x