On Sat, May 30, 2009 at 4:03 PM, Bob W <p...@web-options.com> wrote: > >> >> I wasn't aware that the VAT was lower on used items or calculated on >> margin instead of selling price. > > The VAT rate is the same.
The effect is a lower rate if calculated on margin rather than selling price. > >> However it simply isn't invisible to >> the buyer since they can still see non-VAT pricing via the net. >> > > Really? On second-hand goods? Where? There may be different rules for > distance trade, but generally if you sell to a non-EU buyer it is the > buyer's responsibility to claim the VAT back - the seller still has to > charge it and pass it on to the government. In the case of second-hand goods > under the margin scheme the seller doesn't know what the VAT will be until > he's actually sold the item. > > It wouldn't make much sense commercially to quote the VAT separately because > a) he might not get the quoted price and b) he's revealing his margin and > giving the buyer a big bargaining chip. > > I think a more likely scenario is that the seller quotes a price without > listing VAT separately then, when the selling price has been agreed he > either deducts the VAT at source or tells the buyer how much to reclaim. > > Bob > Bob, When shopping used, most use either eBay or KEH are a pricing guide. Neither includes VAT in pricing. Though I doubt most are thinking much beyond 'UK pricing is awful' rather than 'the difference is the VAT'. -- M. Adam Maas http://www.mawz.ca Explorations of the City Around Us. -- PDML Pentax-Discuss Mail List PDML@pdml.net http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
