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Ok, I thought Australian taxation was a mess but I'm a little confused with the UK's VAT ! I'm currently wishing to purchase a pair of second hand Beolab 9's from a dealer in the UK and wish to import them to Australia. Am I correct in saying that since he is registered for VAT the item is inclusive of the tax and I would be excluded from paying this tax? This company is saying it is not reclaimable on second hand goods? Some help would be appreciated here, what looked like a good deal is starting to look very ordinary when I have to pay the Australian 10% Goods & Services tax on importation.
BL90, BL5 x 2, BL9, BL8000 x 2, Penta III x 2, Penta II, BL2, BL4, BL2500, RL6000 x 3, MS150, MS150.2, A9, A1, A2, P2, Beolit 12/17, S70, CX50, CX100, Beovox 2500, BS9000 x 2, BS3000, BS4, BC2, BS1, Moment, Essence MkII x 2, BS5 Encore, BG8002, BC8002, BM8002, BG5500, BV7-40 MkIII, BV11-55, BV Avant 85", BC5, H8, E8, Form 2, A8...Serene
I believe it is a norm throughout Europe that second hand items do not include any VAT.
VAT was included in the price (and the balance sheets of the seller) when the item was first sold to a private individual, and it doesn't reappear after that.
--mika
As far as we have been told by UK Customs, VAT is not reclaimable on second-hand goods.
They get their slice of the cake either way (the VAT man that is) as it works like..
An official B&O dealer selling brand new product will buy in a product at £1,000 + VAT (£1,200) and sells at £1,500 + VAT (£1,800).
He will reclaim the £200 on his purchase price, but pay the VAT man £300. This means he will be paying the VAT man £100. This is the Traditional VAT Scheme.
A used 're-seller' (I hate that word, but hey) will buy a product with no VAT at £1,000 and sell at £1,500 which gives a £500 profit. On this £500 profit he pays 20% of that as VAT under the 'margin scheme' - which is £100.
So, either way the VAT man gets £100.
We did have some anomalies whereupon the odd dealer would invoice out pre-owned goods with VAT, but that got too complex mixing it up with our margin stock and we stopped buying these anomalies. We now simply create a purchase invoice for everything with no VAT breakdown, which makes invoicing and our VAT payments much more straightforward. Our recent VAT inspection went perfectly, so we're clearly doing it right.
So - in essence, you can't claim back the VAT under the margin scheme as that's the responsibility of the re-seller. However, if you're buying new - you can.
Hope that helps!
Lee
Thanks so much for your prompt advice, much much appreciated!
OMG. We have the same problem. I was intending to get the Beolab1s though.. Since I thought it is prettier.
wonderfulelectric: OMG. We have the same problem. I was intending to get the Beolab1s though.. Since I thought it is prettier.
Imposing you mean? I find they dominate the room...in a good way though!
Luke, bear in mind it is more than just the 10% GST that you have to pay when the speakers land in Australia.
x:________________________
Yes correct, forgot to mention duties etc. I need to start up a pre owned business in Australia!
Jonathan: Luke, bear in mind it is more than just the 10% GST that you have to pay when the speakers land in Australia.
Gosh! Totally tax on top of tax.
Luke: Yes correct, forgot to mention duties etc. I need to start up a pre owned business in Australia!
I'm already in the process
That's great Jonahan. I own 2 watch shops in Sydney & Brisbane that sell new and pre owned and selling vintage gear is absolutely more fun, always thought about diversifying into B&O gear though, good luck to you!
Oh what watches? What brands? Very interested. I know plenty are selling their watches but really nothing I am looking for.
Any Van Cleef ? Or Lange Sohne or Piaget? .... Sorry a little off topic.... But since you have watch shops. Planning to get a good watch for myself come April or May as a gift ....for myself...lol...
wonderfulelectric: Oh what watches? What brands? Very interested. I know plenty are selling their watches but really nothing I am looking for. Any Van Cleef ? Or Lange Sohne or Piaget? .... Sorry a little off topic.... But since you have watch shops. Planning to get a good watch for myself come April or May as a gift ....for myself...lol...
Not an agent for A. Lange, but have a few second hand in our stores, actually wearing a Lange Datograph in platinum and a lovely Lange 1815 in rose gold, I love their teutonic design. From my dealings with our customers B&O, cars and watches go hand in hand.
Thanks! Well if you have the Lange 1 or the Lange Zeitwerk..... Do you have a website? Do you have to be an agent to sell secondhand watches? Personal message me!
That's news to me!
I thought that Israel's simple VAT-reclaim system was representative of the way Europe does business.
Here, everything is VAT-taxed, new and second-hand, and everything is VAT-reclaimable, subject to the proper conditions, in your case, export. Any second hand-items I sell are fully VAT-refundable, with the proper documentation, ie a commercial Tax-invoice.
It goes even one simple step further - if a customer orders a new or second-hand item from me, for direct shipping to his own country, I make up the Tax-invoice WITHOUT any VAT added onto it. All the Tax people want to see is the proof that it was indeed exported, and the Postal Tracking number is that proof.
So my customer doesn't have to bother himself with the EU nonsense of paying the VAT, and then reclaiming it after he receives the item in his own country.
Menahem