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VAT on paypal

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hi all
I need some info on Paypal
I have a priemeir acount on PayPal for various reasons
my question is on my profile page I have the VAT page Link
does this apply to people that buy from me or does it apply to me? who will get the VAT?

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    That is the customer paying VAT on your items you sell, meaning you have to file for that tax in any tax returns. But you can set your own taxes on the items, over normal VAT rates and keep that, but you'd still need to declare it to be legal.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    ah kk! thanks man
    that reminds me! as a company what amount do you have to be making for tax to start applying to you?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I can't see the Paypal page, but I don't think that what JavaKrypt has told you is correct. You certainly cannot charge what you want as "tax", the amounts payable are set by Government.

    http://www.hmrc.gov.uk/vat/index.htm
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    On the paypal page you can set VAT for diffrent countries etc
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I can't see the Paypal page, but I don't think that what JavaKrypt has told you is correct. You certainly cannot charge what you want as "tax", the amounts payable are set by Government.

    http://www.hmrc.gov.uk/vat/index.htm

    You can on PayPal, you set your own tax rates, but what I said covered both your own personal tax rates, and tax rates set by government - which is what that page is primarily for.

    And check here for tax thresholds for reference: http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-thresholds.htm#2
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    curly_boy wrote: »
    ah kk! thanks man
    that reminds me! as a company what amount do you have to be making for tax to start applying to you?

    In the UK its £70k each year turnover is the amount for compulsory registration.

    When you're approaching this you'd need to inform HMRC that you are approaching the VAT threshold and they will advise you.

    You can voluntarily register for VAt, which might be useful if you're likely to be in a net reclaim position.

    If you need to know more let me know and I'll try to help.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Hey there curly_boy,

    Not too sure about the VAT on Paypal.
    But as to your other question about the VAT thresholds for companies; TheBrilliance was not far off, but the actual amount is £73,000 turnover. See this link for more information.

    Hope this helps.

    :)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Awesome! thanks guys
    so I won't need to be worrying hugely about VAT for awhile yet :) Thanks again
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