Nooby 1st post!

[tobyone]

Hi all,

Just found this forum and many burning questions to ask, but settle for just one...

I'm taking over an established niche site thats being split into 3 sites ("join one get 3 etc..")

The site was owned, hosted and member payments processed in the US by a buddy, who want out (old age!) but me in my wisdom have hosting sorted in the UK for rebuilt sites and wanted to process payments in the Uk...

Main problem is the UK/EU VAT..I'm VAT registered in the UK for another non-adult web sales...so legally I'd have to collect 17.5% for our good oleCustoms and Revenue! Not wanting to do that, never seen it on any site and difficult to admin..

Whats the safe legal,way to process payments without adding or including VAT in Sales? The site used to process 5 figure US$ monthly, (alas not currently :( ) so I want to not get busted for non VAT..
Do I process in the US as is, set up a holding company over seas (where?) or ???
Mucking fuddle it seems to me.. and don't want to do 2257 as I can't as in UK!

ANY help most gratefully recieved! :kissass:

[Geezer]

Post again in English and maybe someone can help

[tobyone]

Thanks for the welcome... What dont you understand Geezer?

[Geezer]

Thanks for the welcome... What dont you understand Geezer?

I don't understand why you thank me cos I never wlecomed you

[tobyone]

Hey, lets leave it there.. Was just trying to get some help thats all.

[Geezer]

Hey, lets leave it there.. Was just trying to get some help thats all.


Nahhh lets not

Like I said try speaking English and you might get some help, talking in riddles is not the way forward.

OK, I can help if you want sales with web site and not pay for being in EU/Uk then just sale more URL's. If you can process URL for common market then use a process who will not pay sale for sale on non sales.

[tobyone]

Right, it's so simple if you put it like that! Thanks!

[Geezer]

Right, it's so simple if you put it like that! Thanks!

No probs

[JT]

Not sure I fully understand the post.

But if your vat registered you have to pay vat on your eu sales. Unless you like the taste of porridge

Forget 2257, you have far more to worry about from EU & UK laws and regs comming up than American ones


welcome by the way :)

[tobyone]

Thanks for the welcome JT!

Yes, if I make take sales in the UK or EU to private individuals I have to charge UK VAT.

But if I own an overseas company or earn money 'overseas' sales go under thats countries laws. I was hoping someone with experiance of doing this was on here..

I've heard many UK site owners have set up over seas, at least thats what the copyright and ownership of some sites indicate.

I dont want to evade income tax, or trade illegally, just keep it simple and not have to include VAT in UK and EU site memberships.

Where the money is earned - Is it where money is processed, where owner resides and banks, or where site is physically hosted, I thought the latter..so confusing!

What EU and UK laws do I have to worry about JT? :(

[Pandemos]

Where the money is earned - Is it where money is processed, where owner resides and banks, or where site is physically hosted, I thought the latter..so confusing!

The 'point of sale' is where the customer resides, so if he's in the EU and you're VAT registered, you have to account for the VAT. Doesn't matter where you or your company is based.

Of course, you were in the US or, say, Nepal you could tell the EU to go whistle for its VAT, but you're not.

[tobyone]

Nepal...Thats the way forward then! Yay! :cheer:

So, who here in UK OR EU charges VAT on their memberships then?

I can't believe nobody here trades over the VAT annual threshold..if so what the point.

(Where do you operate from if you don't? Holding company over seas?)

This is whats suggested by my accountant, who also told me go see what others are doing..hence question.

I'd really appreciate a positive answer before I big time step in sh*t and launch my sites.

[mOBSCENE]

It's probably not a great time to be moving a bunch of sites to the UK, TBH.

All in all, it's probably not a good time to be starting out as an adult webmaster of any kind.

Unless you are in Nepal and have a new idea.

[JT]

So, who here in UK OR EU charges VAT on their memberships then?

Everyone I know

[JT]

This is whats suggested by my accountant, who also told me go see what others are doing..hence question.

You need to change accountants :twocents:

[mOBSCENE]

You need to change accountants :twocents:


Could be worse - "just see what every other bugger's doing" could have been legal advice :noway2:

[tobyone]

Thanks for comments so far. To be fair to my accountant, he said I'd just have to absorb the VAT content to UK and EU sales..and I said but I don't see any UK sites charging VAT, so he said 'well go see what they are doing if you think they are not charging VAT and operating legally....they have set up somewhere over seas possibly.

I've never seen VAT mentioned when looking at others sites membership fees..so I presumed no VAT was being included.

The sites are hosted and legally owned by a long time pal in the US, he just pays me a cut, and in past it's worked well, but as he's wanting out to retire so is handing all over to me..so I just wanted it all within UK, or at least in my control...seems a bad move..Just set up hosting here as well! DOH!

[JT]

Thanks for comments so far. To be fair to my accountant, he said I'd just have to absorb the VAT content to UK and EU sales..and I said but I don't see any UK sites charging VAT, so he said 'well go see what they are doing if you think they are not charging VAT and operating legally....they have set up somewhere over seas possibly.

I've never seen VAT mentioned when looking at others sites membership fees..so I presumed no VAT was being included.

The sites are hosted and legally owned by a long time pal in the US, he just pays me a cut, and in past it's worked well, but as he's wanting out to retire so is handing all over to me..so I just wanted it all within UK, or at least in my control...seems a bad move..Just set up hosting here as well! DOH!

Most people take it out themselves, runing a reprt with the biller, the whole VAT thing is a whole can of worms here. But there are tools for all billers that can also add local taxes if required.

If you get a few minutes use the search feature and have a look, VAT is a long running annoyance and the VAT people didnt help the situation

[Pandemos]

The sites are hosted and legally owned by a long time pal in the US, he just pays me a cut, and in past it's worked well, but as he's wanting out to retire so is handing all over to me..so I just wanted it all within UK, or at least in my control...seems a bad move..Just set up hosting here as well! DOH!

Well if you're going to keep the sites running then you may as well bring them to the UK if that's what you wanted to do in the first place. It's not going to change the fact you'll have to pay VAT.

Incorporating overseas won't help you because that company will still be liable for the VAT and as you yourself are here in the UK, HMRC will say you did it just to try and evade VAT and land you with a bill anyway.

If you can't absorb the VAT, then up your prices to EU customers. The surfer willing to pay $25 a month will pay $30 a month if your content is good enough.

[tobyone]

Well if you're going to keep the sites running then you may as well bring them to the UK if that's what you wanted to do in the first place. It's not going to change the fact you'll have to pay VAT.

Incorporating overseas won't help you because that company will still be liable for the VAT and as you yourself are here in the UK, HMRC will say you did it just to try and evade VAT and land you with a bill anyway.

If you can't absorb the VAT, then up your prices to EU customers. The surfer willing to pay $25 a month will pay $30 a month if your content is good enough.

Sound advice I think... and looks like what I'll do. Thanks.

[tobyone]

Just been read through a long previous post on VAT...what a nightmare!
Especially from 2010...

My main business is car part related, and we do trade intenationally, charging VAT on all private EU sales and not on trade EU (where they have a VAT number) and US and non EU European countries like Norway. Our VAT return is broken down into country of sale etc etc, and all above board, not a problem.
All our customers are very familier with being charged VAT (or not), but i don't think adult site customers are.
If it's shown as added, they won't like it...and who will educate them to accept as normal?

This put us at a distinct disadvantage to US and non Eu sites, as they will always have the equilivalent of our VAT content as usable income... 17.5% more $$$!
Typical...AGAIN..the price of being British and living in "Good ole Blighty" is a very high one.