What types of visa status in the UK render one liable for VAT?
And what types of statuses are exempt from it?
I had a consultation with an immigration lawyer and asked about VAT in their rates and they said that since I'd never been in the UK on anything other than a visitor status, I would not have to pay VAT.
How can I replicate and invoke this with other transactions?
Best Answer
There is no exemption from VAT based on visa type. There is a VAT refund scheme based on where you live or where you plan to live for the next 12 months. I am a British Citizen, so no visa, but can use the scheme because I live in California and can prove it.
I recommend reading the whole of Claim VAT back on tax-free shopping in the UK.
3. Who can use the scheme has the conditions. You either need to live outside the UK or EU, or plan to do so for the next 12 months. You must export the goods "by the last day of the third month after the the month you bought them in".
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Do asylum seekers pay VAT?
If you are not resident in the UK, or you entered the country without permission or as an asylum seeker and do not yet have leave to remain, you are not normally liable to pay VAT.What is VAT liable?
VAT liability is any money owed to Her Majesty's Revenue and Customs (HMRC) authority. It is calculated by totalling the amount of VAT collected as business is done, then subtracting any VAT credits. Value-added tax liabilities are also called value-added tax obligations.Do I have to pay VAT on services from UK?
In the UK, you have to pay VAT on services from the EU and other countries at the same rate as if those services were from a UK supplier. It's called 'output tax. ' This means you need to work out the currency equivalent in sterling for your tax return.What is VAT charged on in UK?
VAT rates for goods and services% of VATWhat the rate applies toStandard rate20%Most goods and servicesReduced rate5%Some goods and services, eg children's car seats and home energyZero rate0%Zero-rated goods and services, eg most food and children's clothesAdding and Removing VAT (Value Added Tax) using a calculator
More answers regarding what types of visa status in the UK render one liable for VAT?
Answer 2
In order to purchase goods in the UK without paying VAT there are two main criteria:
- You must be visitor to the UK
- The goods must be exported unused.
No mention is explicitly made of visa categories. Obviously residential visas are not included. If you were leaving the UK with no plans to return after a short stay you might reasonably be counted as a visitor. I would expect that the second criterion would be much more restrictive.
Note that VAT refunds can be claimed even by residents if they are leaving the EU for at least 12 months.
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