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bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 3822
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As a foreign company (Andorra), if I sell items at a retail

Customer Question

As a foreign company (Andorra), if I sell items at a retail space at the British MotoGP event what is the tax situation?
Submitted: 11 months ago.
Category: UK Tax
Expert:  bigduckontax replied 11 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

These sales will be subject to Andorran tax and, as we know, Andorra is a tax haven.

I do hope that you find my reply of assistance.

Customer: replied 11 months ago.
I am not liable for VAT or to pay UK tax on any money on items sold during the weekend at my retail stand at Silverstone? Andorra is no longer a tax haven, we have to pay company (for a few years) and personal tax now (since 2015).
Expert:  bigduckontax replied 11 months ago.

Well these days even the UK is considered a tax haven! With Income tax at 5% and 10% from 2015 Andorra might well count as a tax haven!

Hooper & Co, Chartered Tax Advisers and Accounts say:

'In order to fall within the charge to UK corporation tax an overseas entity will need to be trading in the UK through a permanent establishment.'

So that knocks that one out, Andorran tax applies. If the UK sales turnover is below 83K then no registration or VAT accounting is required.

Customer: replied 11 months ago.
Okay Keith, that is good news. Thanks for your help. I know 5/10 % is pretty fair really but we were spoilt for too long :-)
Expert:  bigduckontax replied 11 months ago.

I have a customer in Thailand. He is only taxed on any moneys brought into the Kingdom, not what he earns there. That's the way to do it!

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