Archived posting to the Leica Users Group, 1998/03/10
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Marvin Moss wrote: > I have just received a new Jessop catalog & have noticed that > it states that the (15 -20%)? VAT is no longer discounted to > American or other non-UK Leica buyers. > > Is this true --- and if so why? Firstly, UK VAT (sales tax) is 17.5%. Secondly, this is very likely to be true, and the reason is down to a change in the UK law on charging VAT on secondhand goods. Until recently, a dealer would add VAT on the full sale value of the item. (ie. if it cost 100 pounds, he would charge the customer 117.50 pounds and give the 17.50 to the tax man.) This was seen as overzealous taxation, as the full VAT was charged on the item when it was purchased new. The recent law change made it possible for dealers to charge VAT on only the dealer mark-up and not the whole price. Thus if the dealer is making 25% on the above 100 pound sale, he will only charge VAT on 25 pounds not 100 pounds. This makes secondhand goods cheaper to us impoverished UK citizens who actually have to pay the VAT :-) However, as the dealer doesn't want to declare his mark-up (and is legally allowed to withhold this information from the customer), he won't tell the customer how much VAT has been charged, so it can't be claimed back. Sorry for the long-winded explanation - I hope it's clear! Simon.