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is no surprise that the question of Value Added Tax is a common one. The laws and regulations are extensive
and complex. To complicate matters further there can be a
tremendous variation in rates and regulations between neighbouring
countries and even neighbouring states.
Here is a summary
of the various schemes that The
Contrabass Shoppe operate and an outline of what you may
be entitled to reclaim dependant on your individual circumstances
and upon which part of the world you come from.
For these clients The
Contrabass Shoppe are able to operate the Margin
Scheme. Sales made under the scheme to another
EC Member State are treated in the same way as sales within
the UK.
The Margin Scheme,
specifically for second-hand goods, works of art, antiques
and collectors` items has several advantages for the buyer.
The advantages
are as follows;
a) The scheme
avoids the necessity to add VAT at the current UK standard
rate of 15% to the full purchase price of an instrument
or bow.
b) The scheme
accounts for VAT by including it in the gross margin (the
amount by which the selling price of an item exceeds the price
paid on its purchase) of the seller.
c) Any VAT due is payable in the UK by The
Contrabass Shoppe. No further tax is due from the buyer
in the country of destination or in the UK.
d) Goods will
not be subject to acquisition VAT when they are taken into
another EC Member State.
The tax element within the margin is not
re-claimable by the buyer.
Put simply this means that the price quoted
for an instrument or bow is the price that you must pay in
order to obtain those goods. There is nothing added to the
purchase price and there is nothing that you can reclaim.
For these
clients The Contrabass
Shoppe are pleased to offer a discount of up to
5% (at our discretion) on the quoted prices of our stock.
VAT at the standard rate of 15% will be added to the full
selling price. The amount will be shown separately on your
invoice and can, subject to the normal rules, be reclaimed
as input tax.
For these clients The Contrabass Shoppe are
pleased to offer a discount of up to 5% (at our discretion)
on the quoted prices of our stock providing that certain conditions
are met. The conditions for these "Zero-Rate"
supplies are as follows;
a) The client must be able to supply The
Contrabass Shoppe with their full EC VAT registration
number, including the 2-letter country code prefix.
b) The goods are sent or transported out of
the UK to a destination in another EC Member State.
c) The Contrabass
Shoppe can obtain clear and valid commercial documentary
evidence that the goods have been removed from the UK within
three months of the date of supply. Evidence
of export is usually in the form of commercial
transport documents such as an air-waybill or a sea-waybill
etc. that are produced following the shipping arrangements
that The Contrabass Shoppe
will make to forward your acquisition to your home. Alternatively
should you wish to take your acquisitions home with you then
any documents (customerĖs order, inter-company correspondence,
copy sales invoice, packing list, details of insurance or
freight charges, evidence of payment, evidence of receipt
of goods abroad etc.) relevant to the removal of the goods
in question may be used provided that, when taken together
they provide clear evidence that the goods have been removed
from the UK.
Please note that you must account for any VAT
due on your VAT return (at the rate applicable to your country)
for the period in which the tax becomes due and, subject to
the normal rules, you may treat this tax as input tax on the
same VAT return.
Goods
purchased in this way will be ineligible to be re-sold on
the Margin Scheme.
Put simply this means that if
The Contrabass Shoppe are able to zero-rate the supply
of an instrument or bow you will benefit from a slight discount
(at our discretion) on the price quoted. There are no additional
costs to you (apart from shipping if applicable) because you
can reclaim the VAT due on acquisitions as input tax.
For all our clients in North and South America,
Asia, Australasia, Africa and the European countries outside
of the European Community (EC) fiscal (VAT) area, The
Contrabass Shoppe are pleased to offer a discount
of up to 5% (at our discretion) on the quoted prices of our
stock providing that certain conditions are met.
The conditions for these "Zero-Rate"
supplies are as follows;
a) The Contrabass Shoppe can obtain clear and
valid commercial documentary evidence that the goods have
been exported or removed outside the EC from the UK within
three months of the date of supply. Evidence
of export is usually in the form of commercial transport
documents such as an air-waybill, a sea-waybill or a certified
Single Administration Document (SAD - Form C88), etc. that
are produced in the normal course of your taking your purchase
home with you or following the shipping arrangements that
The Contrabass Shoppe
will make to forward your acquisition to your home.
The
Contrabass Shoppe will take care of all necessary
documentation and shipping arrangements.
Put simply this means that The
Contrabass Shoppe will do its utmost to ensure that
you receive a great deal as you are without doubt our favourite
customers.
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