Archived posting to the Leica Users Group, 2003/08/23
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Nathan Wajsman wrote: > > Just curious--why the VAT? There is no VAT on private sales between > individuals. And even if you are a dealer, the VAT seems high on a used item > (mint as it may be). When I lived in Switzerland (i.e. outside the EU) and I > bought a used item from a dealer within the EU, the VAT refund usually > amounted > to only 5% or so, because on used items dealers only charge VAT on their > margin, not on the full price. Nathan, As is often the case on the LUG two and two are put together to get five. I am not a dealer but am VAT registered. I bought the lens through my design business and am selling it through that business. Like any other normal VAT registered business/person in the UK I need to add VAT when I sell any item/service (whether the item is new or used is irrelevant*). This means that if I sell the lens to anybody in the EU I need to add (or account for) the full rate of VAT at 17.5% (total in this case of 1099 UKP). However, if I sell to somebody outside the EU I can sell at the net VAT-free price (935 UKP). *Dealers of second-hand goods can, if they wish, use what Customs & Excise call the 'margin scheme'. Under this scheme VAT is only levied (and accounted for) on the margin. However, not all dealers use the scheme. Professional orientated dealers like Robert White <http://www.robertwhite.co.uk> always quote prices for new and used goods net of VAT. If you buy used goods from Robert White (and are buying from within the EU) you will pay the full rate of VAT. Hope the above satisfies your curiosity. Ian Watts - -- To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html