and they all shout "why buy a gun from europe"

[RobF]

I suggest you go away and study how different industries are affected by VAT registration. To make it simple I will explain why you are barking up the wrong tree. I was VAT registered until 2013. On the SCHEME that was applied to my company by HMRC we had to pay the VAT on goods bought and then pay HMRC the difference between what we collected and the amount we had paid. I clearly remember filling in the online forms which did all the calculations for you. If I have made an error in the way VAT is sorted on EU purchases made by you then how can I possibly know your business.

Yes... that's exactly how it works. There's no SCHEME in conspiracy terms.

I buy product X at £1000 + VAT = £1200

I sell product X at £2000 + VAT = £2400

I have charged £400 VAT and I have paid £ 200 VAT. I give the HMRC £200 (£400 for the VAT collected minus the £200 I paid).



In the EU, to save complex to and from between different Tax offices in different countries, if you have a VAT number the foriegn company does not charge you VAT. In the small chance that there is an error and they do, you reclaim it back like you would do normally, as per above.

If I change the example...


I buy product X at £1000 + VAT = £1200

I sell product X at £500 + VAT = £600

I have charged £400 VAT and I have paid £ 200 VAT. The HMRC gives me £100 (£100 for the VAT collected minus the £200 I paid).


If you are not VAT registered, you pay VAT from the EU countries at their rate like you would do here.



There is nothing personal in this, you do not understand how VAT works. Which is quite surprising for someone who is VAT registered. But it is no different for any business. The rules apply to all. Both ways. We do the opposite when we deal with our EU clients.