17.5%/per click more for a keyword is a mountain to climb?
The down side of registering for VAT is you usually have to add VAT to your sales. However, if your sales take place outside Europe, then VAT doesn't apply.
So effectively you can receive a check from Customs every 3 months.
Here's an old WWW thread:
[webmasterworld.com...]
If you PM me, I can send you a link to another forum explaining this.
Important Note: I am not a tax advisor so get the right advice before doing anything.
VAT is a zero-sum game, except for the extra paperwork, accounting costs, and time lag for refunds.
So much for free enterprise. No wonder they call the USA the land of the free and a place where Entrepreneurs can do well.
sorry to sound negative, but you so do not have a clue what you are talking about in this case.
Shak
I have just read the forum thread that Paul_N (thanks) linked to in his earlier post.
As a small guy based in Europe my Internet business turnover doesn't warrant registering for Vat plus my customers are not based in Europe, my suppliers are not based in Europe, no goods are shipped from Europe, my site is not hosted in Europe
Then you can reclaim the VAT. The threshold for registering for VAT here in the UK is £58,000 turnover. However, you can register for VAT even if your business doesn't turnover this amount.
In most businesses, you wouldn't want to register for VAT if it wasn't necessary because you would have to raise your product prices by the VAT amount (17.5% in the UK). Internet marketing is one area where it is most beneficial because as someone posted above, you shouldn't be charged VAT on expenses if all your business activity is based overseas. Or should I say, you will be charged but you're eligible to claim it back.
The down side of registering for VAT is you usually have to add VAT to your sales. However, if your sales take place outside Europe, then VAT doesn't apply.
Sadly not always -- specifically if you are VAT registered (depending on turnover, think its 60k GBP in the UK) and you sell electronically downloadable stuff, then you have to charge VAT and you don't get it refunded even for orders outside of EU. If you print electronic data and send it via mail on normal paper then you get VAT refund -- and thats really annoying and unfair.
VAT is a zero-sum game, except for the extra paperwork, accounting costs, and time lag for refunds.
No, its not zero sum game -- you have to balance loss of price competitiveness resulting from having to increase prices on products you sell: if you are just a reseller then you might be okay, but if you are original manufacturer who wishes to sell direct then you get hit pretty hard.
