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osCommerce

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Taxation


Lornz

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New to Ecommerce.

 

I'm setting up a shop that will be selling from the UK but will def be sending to Europe and the US/Canada.

 

How does it work do I need to set my taxation to UK and when people purchase anything the taxation will automatically change if they are outside the UK.

 

How do we pay for the taxation to that country.

 

Do we pay for the taxation to other countries.

 

Any help with this would be wonderful.

 

Regards

Lorna

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  • 1 month later...

I'm no tax expert but essentially the situation is that there's no taxation on your sales unless your annual turnover is above the VAT threshold £61,000. Of course you can't reclaim VAT or purchases either. If you are selling to countries outside the EU then the customer may have to pay duty.

 

In other words just ignore tax in osC altogether.

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I'm no tax expert but essentially the situation is that there's no taxation on your sales unless your annual turnover is above the VAT threshold £61,000. Of course you can't reclaim VAT or purchases either. If you are selling to countries outside the EU then the customer may have to pay duty.

 

In other words just ignore tax in osC altogether.

 

thanks radders, we have a turnover of over £61,000 and apply tax on sales.

I guess for the uk its one fairly straight forward rate for all, however its the customers outside the uk and how much they should pay, do i have to add every country(and state) and their tax rate?

 

Many Thanks

 

Mark

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If you like you can apply for flat rate VAT up to around £150,000. Then it is very simple.

Other than that, unless you sell a lot to a particlar country you just use the UK rate of VAT for the EU and nothing outside the EU.

VAT is about to get even more complicated if the new initiative to make everyone pay VAT at the purchaser country's rate rather than their own country's rate takes effect!

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If you like you can apply for flat rate VAT up to around £150,000. Then it is very simple.

Other than that, unless you sell a lot to a particlar country you just use the UK rate of VAT for the EU and nothing outside the EU.

VAT is about to get even more complicated if the new initiative to make everyone pay VAT at the purchaser country's rate rather than their own country's rate takes effect!

 

Thanks Radders I've been looking at your replies and the company I'm doing a shop for will be in the VAT threshold. So this will go a long way to help.

 

I think the best advise I can give is show your reply and get them to discuss things with their accountants so that I can put everything in place for them.

 

Thanks again

 

Lorna

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  • 1 year later...

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