EU VAT - Claiming Refunds

[Wendelspanswick]

I am planning to buy one of these:

http://www.woodlandmills.co.uk
It's £2599 but as its coming from Sweden where they have 25% VAT I am wondering if its worth registering for VAT for a year and claiming the VAT back on the mill which is £500.
At the moment my outgoings on the woodland are greater than my income so it would not make a great impact on my sales but in the future I plan to sell sawn timber, logs, hay etc and would rather be VAT free.
Any pitfalls to look out for?

 

[ford34/2]

I Imagine it to be ever so complicated, otherwise we would all be claiming VAT back. I would have a look at the Gov website, heres a taster::

You must register for VAT if: your VAT taxable turnover is more than £82,000 (the 'threshold') in a 12 month period. you receive goods in the UK from the EU worth more than £82,000. you expect to go over the threshold in a single 30 day period.
Dont know about outside of EU

Stan

Re: VAT/sales tax refund--Norway

Depends.

If the shop is signed up with one of the companies that do this for a living, it's easy. If they display a sign saying "Global Blue Tax Free", "Tax Free for Tourists" etc the shop will (upon your request) fill out a refund cheque.

Check the webpage for the company you have gotten the cheques from (the big two in Norway are: http://www.global-blue.com/ and http://www.taxfreeworldwide.com) to see where you can claim your money back.

If the shop isn't signed up with any such company it's still possible to get VAT back. You then need to print out this form: http://******/yJt8WK, fill it out (one for per shop), present the goods and form to customs upon departure and send the form back to the shop and they will then refund the VAT to you.

VAT in Norway on clothes, appliances etc is 25%
https://www.gov.uk/guidance/vat-refunds-for-uk-businesses-buying-from-other-eu-countries
http://www.ecommerceexpo.co.uk/files/overseas_slot1.pdf

.

 

[mike os]

once you register everything you sell has to have VAT added, if or when you deregister you need to pay back the residual VAT on any assets you claimed vat relief for

so if you did this you would get one years depreciation off the value, say down to £2000, and then have to refund the vat on that amount...

if you are buying a lot, or have done so recently and have vat receipts it may pay, but i think you will find it a royal PITA... they are aware of such moves and dont really like them

 

[Wendelspanswick]

So I would have to register for 4 years to write off the total, not really worth it to save £500, oh well, thanks for the info.

 

[mike os]

and all that time you would be collecting VAT on everything you sell

 

[S-Rail]

Hi Wendelspanswick , I cant help with the VAT but if you do buy one , would you mind keeping me posted as to how it performs as this is something I have been looking into aswell and would be keen to hear as it does seem cheap for what it is !

Cheers Sam

 

[brightspark]

get one made it looks nothing complicated

 

[Wendelspanswick]

Hi Wendelspanswick , I cant help with the VAT but if you do buy one , would you mind keeping me posted as to how it performs as this is something I have been looking into aswell and would be keen to hear as it does seem cheap for what it is !

Cheers Sam

No problems Sam, I guess your not far so you can pop around when it's up and running.

 

[Wendelspanswick]

get one made it looks nothing complicated

I did toy with the idea of building my own, I even went as far as buying a couple of cast iron flywheels* to use for a bandsaw mill but then they started importing these and the price seems to cheap to faff about making my own.
If the HMB126 is a success I might build a larger wide band mill using the HMB as a guide and then sell the HMB on.

*They are a matched pair of stationary engine flywheels, 24" diameter by 4" wide with 2" bores. I think they came off of a Lister similar to this one.

I only paid £20 for them, they are leant against our garden wall as a 'feature' at the moment.

 

[mike os]

at that price it is not worth it... also would like to know how it goes cos at that price it is affordable, unlike the competition

 

[Maker]

I did toy with the idea of building my own, I even went as far as buying a couple of cast iron flywheels* to use for a bandsaw mill but then they started importing these and the price seems to cheap to faff about making my own.

Mathias Wandel on youtube built a bandsaw sawmill, might be worth a look.

What model is that Lister?

 

[S-Rail]

I Did too think of building one , and I had free full use of a engineering workshop and the time and materials just made it a no go compared to second hand woodmizers etc . At 2.5 grand you couldnt complain , a decent Motor would set you back atleat 800 .

Cheers