Newsgroup: uk.announce

In article <1993Apr26.080137.20970@jet.uk> tp@jet.uk (Tarang K Patel) writes:
>In <1r9almINNcr5@frigate.doc.ic.ac.uk> md@doc.ic.ac.uk (Mark Dawson) writes:
>
>>My friend Timothy.Panton@west.nl (Timothy Panton) writes from Holland:
>>-----------------------------------------------------------------------
>>        SparcStation 1 16" colour 24Mb memory.          4000    (1500)
>>                (currently Sun maintained)
[...]
>>I can deliver in the Netherlands or in the UK. 17.5% VAT will be added.
>                                              ^^^^^^^^^^^^^
> Is this a con or what ?
> Surely you don't have to pay VAT on 2nd hand items.

VAT must be paid on most business transactions until the goods reach
their end user.  If the items were bought and accounted as "goods for
reselling" (or are to be put in the books in this way), then Timothy
will have to get the 17.5 VAT which he will put on the sales invoice
and pay that to the appropriate VAT collection agency (UK, or
Holland).  If the items were bought in the same VAT collection period
and their buing price was less than the selling price, than Timothy
will subtract the VAT _he_ paid from the VAT that was paid to him and
claim the difference.  (The same is of course true for any other
positive or negative VAT transactions that occurred in that period.)
This is how the system works.

Diomidis

PS Food for discussion: there is talk in the EEC to introduce VAT on
   second hand car sales.
-- 
Diomidis Spinellis    Internet: <dds@doc.ic.ac.uk>  UUCP: ...!uknet!icdoc!dds
Department of Computing, Imperial College, London SW7     #include "/dev/tty"

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