VAT Charges & Land Dealership = Impossible?

[Tommy Rampal]

So I'm doing all the research I can when it comes to this before jumping in. I am from the UK and am thinking of getting into land dealings. As of right now, not being VAT registered, I'd have to pay VAT (of 20%) towards sim rentals. If I've read correctly, that is the only VAT I am paying, correct?

Are there any resellers from the UK? If so, are you VAT registered? What would you deem as requiring registration?

[161488303349]

if you running a business then VAT payments are typically offset by VAT receivables. as you not receiving any VAT by renting for L$ then all the payments should be deductible

if you renting for R$ off-world then you will have to charge your customers VAT, as is the same as on-selling server space or web services

you will have to pay income tax on any profits that you make either way

LL quite explicit that L$ is not a legal currency. your tax department tho may consider L$ to be value in lieu if you receiving L$ and claiming VAT, even when the L$ sitting in ur LL account and you not cash it out

lots of people get caught out by value in lieu transactions of all kinds, not just online either. like if i trade as a business in cars and swap them with cash difference. business income is based on total value of the transaction not just on the cash part

 best to talk to ur tax accountant about this

[Ciaran Laval]

HMRC don't see inworld transactions as being within the scope of VAT, therefore even if you VAT register, you can't offset it if all your services are paid inworld, there's nothing to pass on.

Being VAT registered isn't cheap, you will almost certainly need to pay an accountant, it's because of these overheads that small businesses don't have to VAT register, turnover is somewhere around £65,000 a year before you must VAT register but if all your supplies or services are outside the scope of VAT, you can't register, even if you cross the threshold.

You could go the paypal route and charge via that, then your transactions would fall within the VAT scope but be careful here, it could very well turn out more costly and it's certainly less appealing to consumers.

 

[Phoebe Avro]

I would not bother, in the uk you have to turn over about £60,000 to be vat reg so your gonna be paying 20% more than people in the USA for all  your regions tier

 

its £66,000 a year