Tomtom audio do they have webpage issues?

[pev999]

I’ve dealt with James and Henry at Tom Tom for years, even though I live in Somerset. Top blokes and always give me a brilliant deal. Just give them a ring.

[Bigboy]

Vat for second hand goods should be for 1/6 of the margin, not 20% of the full price.

[davidhendon]

Probably depends which country you live in. That’s not how it works in the UK.

[Bigboy]

Well, it does according to HMRC …

[anon4489532]

It depends whether or not a trader is signed up to the VAT margin scheme. If they are not, VAT is payable on the full selling price. However, if they are signed up to the scheme then the VAT is 1/6 of the margin - the difference between what they bought it for and what they sell it for. HMRC give a simple example:

[davidhendon]

Thanks HH. That is a subtlety of which I was unaware!

[Gazza]

But i assume the then buyer would still have to pay full vat, despite tom tom only perhaps paying one sixth?

[anon4489532]

No. If you are buying say a used power supply for £2,000 from a dealer using the scheme you’d just pay your £2,000. If the dealer has paid me £1,500 for the item, they would make £500 on the deal and be liable for 1/6 of that: £83.33. That’s the point of VAT - value added. As the customer it really doesn’t matter what the dealer is doing - you just pony up the £2,000.

[fergch]

Well that is the case from the customer, but it does make a difference as the seller - dealer - will add the vat to the price the buyer pays, so the customer pays in the end.

Also it is not a value added tax, but profit tax in the example quoted.

You pay tax on the money you earn, and pay tax again when you spend it.

[anon4489532]

If using the margin scheme the dealer pays VAT on the £500. If not, they pay it on the £2,000.

[robert_h]

So for tomtom’s potential EU customers, is there any extra £ to add to the listed price in a post brexit world?

[anon4489532]

[Suedkiez]

Would be best to ask the dealer - TomTom now has “we now deliver to EU countries” on the web pages.
(And they just sent out their Spring Sale email, I am not even looking )

I believe normally a non-UK buyer would not pay the UK VAT but then has to pay import duties and import VAT in their own country.
Edit: as per HH’s screenshot