VAT MORE QUESTIONS (SURPRISE)

[FatManFuck]

I am confused (Surprise) over the new VAT and reading some of the posts about it...

So let's start simple... I am right in thinking what ever we charge, simply as 20% VAT added to it... and that AW keeps that 20% to pay the VAT...

Reading what some people have put/said, sounds as though there is an additional reduction from our actual payout, in addition to the 30% AW already takes, is this right ? Hoping not lol

[FatManFuck]

Second are any groups exempt... as I received an email today from a group I am not even part of (confusing) saying their members were not going to be charged VAT... how is that possible... here's the email...

The following is an email sent to you by an administrator of "XXXXXXX".

Hi, all XXXXX members will no longer be charged the extra 20% and will have no
forms to fill out at all.

You will also not need to account for VAT via reverse provisions in your
quarterly returns.

We are updating systems with the new info and will be looking into getting
any VAT that has been already charged to you sent to your bank/payout info.

You do not need to do anything at present.

Thanks

--
Thanks, XXXXXX

[admin]

Hi, 20% is based on the 30% making it 36% for transfers.

20% of 30% is 6%.

Clients get charged an extra 20% as you mention yes.

Email will of been received as you are a member of the forums here http://www.dailypayservice.com/forum/

As far as I know only this group is exempt from VAT charges and all its members. Other groups may follow suit if they are able to.

Under reverse provisions a business entity may account for the VAT in their returns. Meaning AW will no longer charge it to you.

[FatManFuck]

Thanks for your reply, however your reply prompts more questions

So If I am reading what you said right... Your now saying AW stop 36% from all withdrawls... Surely this means they are putting VAT on twice, no ? They are charging the end user 20% for the sales made... how can they also put VAT on the NET profits that are left ?

For example we sell £1000, they put £200 VAT on it which the customers pay... then out of the £1000 that is left after VAT, they put VAT on the net amount as well, taking their £300 (30%) but also charging VAT on the 30% meaning another £60 (20% of the 30%) that makes no sense what so ever...

Can I actually ask are you guys (AdultWorkForum) part of Adult Work, or a separate entity ? Just curious...

Is there a link to where this is explained, as I said I am really struggling to understand how they can put VAT on something twice, putting it on the end user and the producer ?!!!!

Second big question which comes up from your reply... how can anyone, individual or group be "exempt" surely AW can not decide that... if it's a government thing, or to be in line with the EU... then surely it as to be a blanket rule...

What would being a member of a forum mean to people like the government and the EU governing bodies ? I am not sure why they would make members of a forum exempt ? Or by exempt do you mean that AW will expect those individuals to take care of their own VAT... ?

Not trying to be a dick... just a very confusing and worrying time...

[xKatieBabyx]

Hi FatMan, no one is charging anything twice. AW were not aware of how the UK actually interprets the new EU directives on the sale of digital goods which came in January 2015 (no one is, not even the experts!), so they took advice and did what they thought they needed to. Turns out that as a business based in the UK the digital goods act changes do NOT apply to us and we should not be paying the new VAT charges on our admin fee. We already pay taxes on our earnings via self assessment so to pay this VAT on our admin fee would indeed be paying twice!

[admin]

Hi, separate yes.

AW is a market place, we and the clients are both its customers, both sets of people have to pay the VAT charge.

DP group is exempt under law via reverse provisions.

The members of the forum arent exempt, just members of the DP group in this instance. As the members are registered under DP they are also exempt.

If you are a registered business I can also help you avoid the VAT charge if you wish. Skype is "dailypaysevice"

Thanks

[FatManFuck]

Thanks to Katie and Admin... I really think this is messed up big time, I am going to speak to my accountant about this issue as it still in truth makes no sense...

I don't get how AW can charge a customer VAT and then us as well... if anything we should be charging AW VAT as they are earning money (30% off us) I might be mad... but I don't think so :/

Again thanks for the input...

[xKatieBabyx]

Customers pay 20% extra on everything they buy on the site, as do we. See it as one big shop with all of us as customers. This is correct. the only thing that was not right was them charging us vat on top of the fee we pay them to cash out our earnings, and that has been corrected now x

[FatManFuck]

Hey Katie... Are you saying they wont be taking the extra 6% (20% of 30%) when we cash out, cause I thought that was still in place ? Where have they said that was wrong and won't be happening ? Cause by the ADMINS answer that seems to be still in there ?

PS not meant to sound like a line, but how can you be so cute and so smart at the same time ?

[FatManFuck]

http://www.adultwork.com/LKBA.asp?A=740

They just sent me that in answer to if they do take 20% of admin fees... so that suggests they do still take it from withdrawals... or am I reading this wrong ?