Thread: Import duties on Landy parts from UK

Originally Posted by Reads90

It is the same as GST


BUT VAT is 20% not 10 % like GST


Sent from my iPhone

It may be 20% but their prices are 40 % cheaper than here!......

Originally Posted by pfillery

So VAT is like their version of GST? Do all retailers charge it or only registered businesses? For example, i run a small sideline business but as my turnover isn't above a certain limit, I am not registered for gst. Is it the same with VAT or do all businesses pay it?

It used to be that any business with a turnover above 23K (iirc) had to be VAT registered. VAT is administered by Customs & Excise, who are much, much nastier than the tax man if you're on the wrong side of them.
I don't know what the limit is nowadays.

Originally Posted by pfillery

So VAT is like their version of GST? Do all retailers charge it or only registered businesses? For example, i run a small sideline business but as my turnover isn't above a certain limit, I am not registered for gst. Is it the same with VAT or do all businesses pay it?

You will find all mainstream businesses are VAT registered. Small businesses should be too.. Best case is.. youre registered but dont earn enough to pay tax!...At the end of their financial year (April) they have to do a tax return.Either self assessment or If you are employed by a business that is registered all that is done for you as your tax is assessed at source and you pay depending on your tax bracket/allowance etc... However if you bought and sold on ebay for example you should declare it.. Many don't but with all things money wise you take a chance as money electronically moves about and there is a trace and as we all know if the tax man gets a sniff of blood.....
But if you were a tradie doing cash in hand work off the books as so... it would be harder to run a case against you... as a sting operation isnt a cheap thing to set up and again there are some really big fish higher up the list... However if you were claiming dole money and working and they got a sniff... they will definitely have a piece of you...

James

Actually, VAT is not the same as GST.

GST here is levied at 10% of the final price paid by the end user. All other gst 10% monies paid down the line by the supply chain are refunded in full.

ie: I buy an item for $100 + gst - $100 + $10 = $110
At the point of sale I mark up the item 25% - $100 + 25% = $125 + gst - $137.50

Lets say for simplicities sake, that I purchased ther item from the importer. The $10 I sent them as gst, they remit to the taxman.

I collected $12.50 in gst on behalf of the tax man. I paid $10 to the tax man when I purchased the item. I keep $10 of the $12.50 tax collected, and remit the $2.50 to the taxman. It works like this right down the supply chain, and in the end the taxman ultimatley collects $12.50 in gst for the sale with all parties being rebated/credited for the tax paid down the line except the first point in the supply chain. They pay gst with no rebate/credit. So the taxman still gets 10% of the final price the end user paid ... $12.50.

VAT is a Value Added Tax ... it's added at every change of ownership of the goods down the supply chain.

I paid $100 for the item + VAT (20% ?) = $120.00. I mark up the item 25% and sell it for $144 + VAT = $172.80 (I mark up the VAT incl' price because is IS my landed price with no credit due) ... everytime the tax is added, it goes back to the taxman, no credits returned to offset the tax you paid tio land the item into your stock/inventory. So it's actually tax on tax on tax on ... and the more times the item changes hands, the more tax money the taxman gets. So the purchaser paid $172.80 incl' VAT ... they markup 25% + VAT to the next purchaser down the supply chain .... $216 + VAT = $259.20

... and people complain about gst !! ?? VAT is far more savage.

But I digress ...

... and, any item I buy to run my business (ie : printer lets say) I get back ALL the tax I paid.

Printer $1000 + gst = $1100. When I do my BAS I claim back the $100 gst I paid on the printer.

Means the inputs/expenses made to run your business are tax free ! You don't pay gst on the items you purchase to run your business ... printer, fuel, computers, tools, oils, consumables, etc, etc ...

The only problem with buying from UK is the postage rates, some suppliers charge a fair amount whereas others charge heaps. I recently was purchasing a window regulator for my D2 from UK as prices were good, the postage from different suppliers ranged from 17-44 pounds. VAT(17.5%) is not added for goods to Aus, in chasing parts I have not had any trouble with suppliers charging VAT, they all know the rules for EU and rest of world.
Cheers Matt

Postage costs can vary wildly over here, depending on who you use. Courier firms have sprung up all over the show in the last few years as the Post Office / Parcelfarce has got progressively worse. Certainly whenever we've flogged odds & sods on Ebay the postage has been the hardest bit to resolve, to the extent we only ever use the Post Office's Parcelforce service now just to keep it simple !

Not saying there aren't a few firms making an additional few quid out of the postage / shipping though, advertise stuff cheap but charge that bit more for shipping = still make the same money.

Originally Posted by Fluids

Actually, VAT is not the same as GST.

GST here is levied at 10% of the final price paid by the end user. All other gst 10% monies paid down the line by the supply chain are refunded in full.

ie: I buy an item for $100 + gst - $100 + $10 = $110
At the point of sale I mark up the item 25% - $100 + 25% = $125 + gst - $137.50

Lets say for simplicities sake, that I purchased ther item from the importer. The $10 I sent them as gst, they remit to the taxman.

I collected $12.50 in gst on behalf of the tax man. I paid $10 to the tax man when I purchased the item. I keep $10 of the $12.50 tax collected, and remit the $2.50 to the taxman. It works like this right down the supply chain, and in the end the taxman ultimatley collects $12.50 in gst for the sale with all parties being rebated/credited for the tax paid down the line except the first point in the supply chain. They pay gst with no rebate/credit. So the taxman still gets 10% of the final price the end user paid ... $12.50.

VAT is a Value Added Tax ... it's added at every change of ownership of the goods down the supply chain.

I paid $100 for the item + VAT (20% ?) = $120.00. I mark up the item 25% and sell it for $144 + VAT = $172.80 (I mark up the VAT incl' price because is IS my landed price with no credit due) ... everytime the tax is added, it goes back to the taxman, no credits returned to offset the tax you paid tio land the item into your stock/inventory. So it's actually tax on tax on tax on ... and the more times the item changes hands, the more tax money the taxman gets. So the purchaser paid $172.80 incl' VAT ... they markup 25% + VAT to the next purchaser down the supply chain .... $216 + VAT = $259.20

... and people complain about gst !! ?? VAT is far more savage.

But I digress ...

Ned Kelly was a gentleman,compared to the UK Government and their VAT.