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Current Location:HOME>NEWS >How to calculate VAT VAT on import/sales?

How to calculate VAT VAT on import/sales?

Source:AnshengBrowse:5870Publish date:2018-05-07Back

For cross-border sellers, the importance of VAT is clear. Again, I want to talk to you about this, after all, it cannot be overemphasized.


What is the VAT?


Very annoying tax? A joke. Of course, it is the abbreviation of Value Added Tax, which is widely used in the eu, and it is an excise Tax on goods or services in circulation.


In the UK, if a merchant sells goods or services to the UK and Europe, or imports goods from abroad to the UK and Europe, VAT is considered.


The merchant needs to register the VAT number (VAT number) with the UK revenue and customs administration (HMRC), make quarterly declaration as required, and pay the tax.


What is the VAT?


The specific calculation is divided into two parts: import and sale.


1. Import part:


Import duty = import value added tax + import duty.


Import VAT = (declared cargo value + head freight + tariff)X 20% (this is the business can be returned)


Import duty = declare value X product tax rate.


2. Sales part: the Standard Rate is used as an example here.


Sales tax = price (pre-tax price) X 20%.


Market price (including tax)= pricing (pre-tax price) + sales value added tax.


= pricing (pre-tax price) + pricing (pre-tax price) X 20%.


= price (pre-tax price) X 1.2.


In other words,


Sales tax


= market price / 1.2 X 20%.


= market price /6 (paid VAT, 1/6 of the market price)


For example


How to calculate VAT VAT on import/sales? VAT calculation formula


Again for instance


A pair of shoes to the UK, 200 pairs, declared value 20 / double. So, the total value of this pair of shoes is 4000 pounds, and the head range is 500 pounds, and the shoe tax rate is 10%. The final sale price (tax-inclusive) at eBay is 100 pounds per pair. So, how much VAT(VAT) should be paid in the quarter?


1) import VAT calculation:


Tariff = declared value X commodity tax rate.


* 10% = 4000


= 400 pounds


IMPORT VAT (IMPORT VAT)=(declared value + head freight + customs)X 20%.


= (4000 + 500 + 4000) X 20%


= 980 pounds


2) sales VAT calculation:


If the shoes are sold online in the current quarter, the final sale price will be 100 pounds per pair, and the actual sales may appear as follows:


A. The number of shoes sold is 0. The sale is 0, the sale value added tax is 0, the seller can apply for tax rebate (import value added tax)980 to the UK revenue and customs administration.


B. 200 pairs of shoes are sold. That is, the sales amount is 20,000 pounds, the sales value added tax is 20,000 /6=3333.3 pounds, and the VAT(VAT) is 3333.3-980=2353.3.


C. Only part of the shoes are sold, such as half, or 100 pairs, so the sales amount is 10,000 pounds, and the sales value added tax is 10000/6=1666.6 pounds, and the VAT(VAT) is 1666.66-980 =686.6 pounds.


D. If only 50 pairs of shoes were sold, the sales value added tax at this time would be 50*100/6=833.3. At this point, the sales value added tax would be lower than the import VAT of 980, at which time the VAT(VAT) should be paid 833.3-980=-146.7. That is to say, at this point, the UK revenue and customs administration will return 146.7 pounds to you after the VAT deduction.


In addition, there are new laws in Britain!


The British government has announced that it will begin implementing the inventory service Due Diligence Scheme from April 1, 2018.


This law is applicable to enterprises for outside the European Union imports from outside the eu and provide storage services the service provider in the UK (that is, to provide warehousing services to overseas sellers overseas positions, are applicable to the bill oh) which requires qualified warehousing service provider to the British tax registration by the general administration of customs, the overseas customers are strict due diligence (for example, if the customer has a valid British value added tax (VAT)); If an overseas customer is found to be uncompliant, he or she must stop working with these clients and inform the UK revenue and customs administration of the relevant information.


The service provider must register with the UK revenue and customs administration before 2018/6/30.


The service provider must register with the UK revenue and customs administration before 2018/9/30.


The seller needs attention! After the implementation of the regulation, the non-compliant warehousing service provider will no longer be able to serve overseas warehouse. Some very mature tips for sellers:


tips


A registered warehousing service provider for compliance (the UK revenue and customs administration will publish the list).


It provides information required to the warehousing service provider, such as the compliance of the UK VAT number and cargo information.


To ensure timely declaration and payment of VAT (VAT) in accordance with relevant regulations.


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