| Pages in topic: < [1 2] | VAT number required for inclusion in a database? Thread poster: Dave Greatrix
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Mary Worby 
United Kingdom
Local time: 05:24
German to English
+ ...
| You do still have to pay the VAT | May 20, 2003 |
Guili,
Essentially, being registered voluntarily is no different to mandatory registration, the procedures are the same. So you have to pay VAT on purchases and charge VAT on services, then tot them all up at the end of the quarter and pay (assuming you\'ve earned more than you\'ve spent) the nice VAT man the difference. If you\'ve spent more than you\'ve earned, the VAT man gives you money back.
Hope that makes sense!  ... See more Guili,
Essentially, being registered voluntarily is no different to mandatory registration, the procedures are the same. So you have to pay VAT on purchases and charge VAT on services, then tot them all up at the end of the quarter and pay (assuming you\'ve earned more than you\'ve spent) the nice VAT man the difference. If you\'ve spent more than you\'ve earned, the VAT man gives you money back.
Hope that makes sense! 
Mary ▲ Collapse
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Quote:On 2003-05-20 10:01, MaryR wrote:
...
Hope that makes sense! ![](\"/inc/bb/images/smiles/icon_lol.gif\")
Hey - that\'s not fair. As a non-native speaker I cannot figure out what *******! and ***! actually mean, provided that the number of asterisks is correct.
And helping to make sense:
In Germany, if you are not VAT registered, you are obliged to deduct 16% VAT of your invoiced amounts to the tax man anyway. The difference is that you are not permitted to charge your clients with any VAT, and that you don\'t get any VAT remunerated. ![](\"/inc/bb/images/smiles/icon_cry.gif\")
[Edited at 2003-05-20 11:38]
| | | | Marc P (X)
Local time: 06:24
German to English
+ ...
| I'm no accountant | May 20, 2003 |
Mary,
I\'m not absolutely sure of the figures (Ralf? Robin?), but I am sure of the principle.
Assuming VAT is at 15%, if the gross price is 100 Pounds, to use your example, the net price is NOT 85.11 pounds. Work it out for yourself:
Net price = 85.11
VAT @ 15% = 12.77
Total = ... 97.88!
The reason is that the retail price, including the VAT, is not 100%. It is 115%. The VAT is 15% of the net ... See more Mary,
I\'m not absolutely sure of the figures (Ralf? Robin?), but I am sure of the principle.
Assuming VAT is at 15%, if the gross price is 100 Pounds, to use your example, the net price is NOT 85.11 pounds. Work it out for yourself:
Net price = 85.11
VAT @ 15% = 12.77
Total = ... 97.88!
The reason is that the retail price, including the VAT, is not 100%. It is 115%. The VAT is 15% of the net price, not 15% of the final retail price. Imagine VAT at 50% and you will see what I mean: an item for 100 pounds (net) will have an extra 50 pounds VAT and will cost 150 pounds retail. The VAT is not 75 pounds.
The other thing is that you can offset the VAT against income tax. I assumed the base rate of UK income tax to be 22%. If you don\'t even reach the minimum bracket, you are unlikely to be VAT registered anyway, and I am guessing that few translators would be in the next higher bracket, particularly after deducting expenses, though I don\'t honestly know.
Since you can\'t offset what you don\'t actually pay, if you are registered for VAT you can\'t offset it against income tax, but if you\'re NOT registered for VAT, you only actually pay 78% of the VAT. (Note, not 78% of the total, because by offsetting against income tax, you only \"pay\" 78% of the non-VAT part of the price irrespective of whether you are registered for VAT or not.)
Hope that\'s clear - if not, perhaps someone else can explain it more clearly than I can.
Marc ▲ Collapse
| | | | Mary Worby
United Kingdom
Local time: 05:24
German to English
+ ...
| My head hurts! | May 20, 2003 |
2003-05-20 10:56 MarcPrior wrote:
Assuming VAT is at 15%, if the gross price is 100 Pounds, to use your example, the net price is NOT 85.11 pounds. Work it out for yourself:
Net price = 85.11
VAT @ 15% = 12.77
Total = ... 97.88!
Think this is the root of our confusion. VAT is 17.5 % here in the UK.
Net price = 85.11
VAT @ 17.5 % = 14.89
Total = 100
Bingo! 
Mary
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Marc P (X)
Local time: 06:24
German to English
+ ...
Quote:
Think this is the root of our confusion. VAT is 17.5 % here in the UK.
Now I see what you mean: 15% is a convenient approximation of the VAT component, not the VAT rate. Well, I told you I was no accountant.
Still, being pedantic, the point about income tax still applies. I think.
Harry: the moderators have told me that I\'m not allowed to say that I\'m ... See more Quote:
Think this is the root of our confusion. VAT is 17.5 % here in the UK.
Now I see what you mean: 15% is a convenient approximation of the VAT component, not the VAT rate. Well, I told you I was no accountant.
Still, being pedantic, the point about income tax still applies. I think.
Harry: the moderators have told me that I\'m not allowed to say that I\'m a \"pedantic *******\" without the asterisks, as they otherwise anticipate 4,792 \"Agrees\" within one hour, which would crash the ProZ server.
Marc ▲ Collapse
| | | | | .. or the other way round: | May 20, 2003 |
Quote:
Net price = 85.11
VAT @ 17.5 % = 14.89
Total = 100
100 / 1.175 = 85.106 = 85.11 (correctly rounded)Marc, I just looked up \"a pedantic old\" in Google and got 3 hits for 7 characters
and a wealth of other amazing terms.
[Edited at 2003-05-20 12:05]
| | | | | Hey - let's stick to words | May 20, 2003 |
we can all do those! Numbers make me ill!
| | | | | For Gillian: | May 20, 2003 |
Quote:
2003-05-20 17:10 gilln wrote:
Hey - let\'s stick to words
we can all do those! Numbers make me ill! ![](\"/inc/bb/images/smiles/icon_smile.gif\")
Net price equals eightyfive point one one
VAT at seventeen point five percent equals fourteen point eight nine
Total equals one hundred
one hundred divided by one point one seven five equals eightyfive point one zero six which equals eightyfive point one one (correctly rounded)
[Edited at 2003-05-20 17:32]
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