email sent H.M.R.C.

[sailorman]

Dear Sirs
as from last week “General Stores” in Oostende are able to provide supplies i.e. tobacco, beer, spirits ect with V.A.T. & Duty Paid.
Can you please confirm this to be “Legal” therefore privately owned Boats returning from Belgium will have paid all monies due on the goods they import.

 

[Angele]

I think the answer is surely yes, provided it is for your own personal use, but this is not restricted to a single shop in Oostende.

When the duty free limit between EU member states was removed it was replaced with an as much as you can carry approach PROVIDED you don't try to flog it when you get back to the UK. Why else do the "booze cruises" exist if it isn't for people filling up their cars with cheap booze on the basis that you don't then have to pay duty/VAT when you return?

(Of course, this would not apply to boats returning to the UK from the Channel Islands, since they are not in the EU).

Interested to see when you get an answer from HMRC and what they say.

 

[LadyInBed]

The supermarket in Cherbourg are also able to provide supplies i.e. tobacco, beer, spirits ect with V.A.T. & Duty Paid.

I don't see what point you are making /forums/images/graemlins/confused.gif

 

[sailorman]

The Point is
General Stores are / were the "Duty Free" Suppliers.
their turnover must have been badly affected by the ban on Duty Free Stores

 

[LadyInBed]

Ah! I see.
I can't see it being a problem as the label code on the bottle / packet will say if it is duty paid or not.

 

[sailorman]

i am interested in what the Invoice states

 

[robp]

Conversely, goods should not be sold duty free to travellers who are not travelling outside the EU?

 

[sailorman]

Yes we know that.
hence G.S. selling all duties paid.
my guess they ( G.S. ) had to change or the Belgian government altered vat law to allow a zero rated or vat exempt company to invoice inc vat

 

[robp]

Hmm OK but goods are exempt or zero rated not traders.
Sorry maybe I'm being thick. (Probably) /forums/images/graemlins/smile.gif

Anyway see what reply comes.

 

[sailorman]

some cats of trader are exempt ( cant charge & cant claim vat back )

zero rated cant charge vat buat can claim back

the above might be the wrong way round, but like listed buildings, doctors ect

 

[robp]

Oh OK. If that is the case I stand corrected - I thought there was just registered or not registered. Thankyou.

 

[Tranona]

Do you have examples of "categories of traders" that cannot charge VAT?

 

[Leighb]

You can even be "partially exempt", a VAT nightmare, but can apply to yacht clubs, does to us anyway.

Income/expenses related to sailing, safety and members services are exempt. However income/expenses related to bar and catering are vatable.

This causes the finance gurus in the club major headaches every year.

 

[duncanmack]

[ QUOTE ]
Do you have examples of "categories of traders" that cannot charge VAT?

[/ QUOTE ]

Insurance companies for one. Exempt...

MOT test stations (if that's all they do) Outwith the scope...

/forums/images/graemlins/grin.gif

 

[Tranona]

That is not the same thing as is being suggested. It is the category of transactions that are exempt, not the entity. I am in that position because some of my work is with Educational organisations that are exempt - or more properly the services I provide are in the list of exempt. My clients do, however also have activities that do come within VAT.

Many retail organisations can deal in exempt, Zero rated and VAT able goods so like Yacht Clubs need systems to account for them correctly (often in the bar code or a code in the till).