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Are Export Sales exempt from VAT Threshold

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I have just received a letter from HMRC about going over the VAT limit. I have checked and on a rolling basis it looks to be true. This happend back in 2016. This could be a hefty bill? I run most of my sales online and around 25% of them are to outside the EU. This would take me under the limit. I'm very confused about the information here. HMRC states "to check if you have gone over the threshold add together total value of UK sales that are not VAT exempt. It goes on to say Exclude goods or services you supply outside the UK. I'm going mad about this. The potential bill might end my business. Any clarity would help.

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By Accountant A
26th May 2019 23:22

Hello there!

I'm looking for a copy of Pink Floyd's Dark Side Of The Moon A2/B2 Solid Triangle and I'd like someone who makes their living selling records to give it me for nothing.

Hope you can help.

Thanks (1)
Replying to Accountant A:
By stepurhan
28th May 2019 13:22

Surely you really want a copy of this.


Thanks (0)
By Wilson Philips
27th May 2019 14:16

Exports are not exempt. They are zero-rated supplies made in the UK, so the bad news is that they are part of your turnover for registration purposes.

Caveat - I assume that all goods sold are in fact dispatched from the UK. Sales of goods that never enter the UK can be disregarded.

Thanks (2)
By johnhemming
27th May 2019 15:00

I am not an accountant, but if I were you I might look at the Margin Vat Scheme, that might give you the ability to be only liable for VAT on the difference between the price you pay a private seller who is not vat registered and the price you are selling at. With export being zero rated you could at least end up having a smaller vat bill.

I have a copy of Dark Side of the Moon and also a copy of Dark Side of the Moon as sheet music so I don't need a record.

Whichever way it is worth paying someone who does know the rules inside out for advice about these things.

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