Talk Morgan Forums Community The Malvern Arms M3W + VAT

Why do Morgan advertise the M3W in the UK as £25,000 + VAT

Is VAT an option?, is it variable?, is there some marketing price psychology going on?

Why not on other models?

Why is it irritating me?

No VAT on an export to outside the EU. Could be the reason...

VAT is calculate at a different % in each country within the EU,
Therefore it is up to the individual supplier of Goods working within that Country to pass on the VAT value (taxable revenue) of the product to his Taxing office.

Goods coming into the UK from the EU are exempt from VAT payment to the supplier but he pays the 20%VAT to HMRC once he has sold the Goods.

Goods coming into the UK from outside the EU, the Supplier has to pay VAT 20% on arrival at Docks, before Goods are collected (that Hurts). because as a supplier you have paid your VAT before you have collected it.

As an example i work closely with a Spanish Distributor of the same product we work with swopping Products when short.

I send him the Goods at net, no VAT

He sells the Products with i believe the VAT in Spain is 8% on top, he then pays his Government 8%

Him sending me Goods Net

I sell +20% then i give our HMRC 20%

Although you suggest this is only the 3W, unless i am corrected the rules apply for everything.....where there might be a difference is if an individual is purchasing direct from the factory on UK plates, then taking it to another Country, he will of coarse be rewarded with a piece of paper that proves he has paid his dues.

simples

It can just be a way of reminding the public of the large chunk of the final price that goes straight to the taxman. In business I've always tried to think in ex VAT terms on the basis that the VAT doesn't belong to me - I'm just an unpaid tax collector. It's not helpful to have it in your mind that your turnover is 1.2 million when it's really 1 million (plus the 200 K that belongs to the government).

I read a while ago of a hairdressing salon which got fed up with their punters implying that they were charging too much. They took to breaking customers bills into it's component parts a% on products, b% on heating lighting and water, c% on salaries, x% on uniform business rates, y% on corporation tax, z% on rent and so on, with 20% VAT on top on the whole lot.

TO ADD:- there is also the issue of VAT qualifying vehicles, as a private individual you are subject to the VAT element on your purchase, however if you are a VAT reg Business you can take the vehicle under the VAT QUALIFYING SCHEME, thus you can purchase the vehicle through your Business and claim the 20% VAT back, however there are certain rules must be adheard to.

Not to be used for Social or Pleasure
Must be kept at place of work
Not to be used to get the shopping in
etc etc etc.

OK so: 1) make us all share holders = Which means traveling for business meetings all over the country.

2) Move the office to the study at home.

3) The can do the shopping in the family car.

Sorted your 20% up on the Max ... if it works we'll have a business meeting and you can buy me a pint.

TRMAN your miles behind, iv been using this method for a few years now

it has to be done

Somebody one told me a story of a subbie he'd worked with before IR45 in the UK. He got a tax/VAT investigation as he'd claimed basically everything he could and was paying minimal tax. The inspector asked him how he justified his soda as a business expense. To which he is reported to have replied "we'll your sat on it".

No idea if true but still raises a smile.

The latest one i recently heard, was putting through McDonalds receipts.

The VAT inspector asked him to explain!! the Business owner replied i buy my visitor there meal.

VAT man, What!! a Big Breakfast and 2 x Happy meals at 7.30am on a Sunday morning !!!!