VAT and Tax Explained

VAT and Tax Explained
Lara Pollard-Jones
Lara Pollard-Jones

We’re often asked why some people are charged VAT and some people aren’t, so we thought we’d break it down for you so you can see who pays what and why.

UK
Everyone in the UK has to pay VAT (Value Added Tax).  At the time of writing, this is charged at 20% which means that 20% of the price you pay is VAT.  As a VAT-registered business, we have to collect and pay VAT to HMRC (His Majesty’s Revenue and Customs) so we don’t get to keep that 20%, we have to pay it as part of our VAT bill!
Schools and charities may be able to claim VAT relief, but this is something calculated at the time of your tax return.  If you think you will be eligible for tax relief, make sure to keep your invoice as you may need it at a later date.

Australia
Orders to Australia have 10% GST (Goods and Services Tax) charged in a system that is similar to the one in the UK.  We do not charge GST if an order is over $1,000AUD as the GST and import duties in this instance are calculated upon the order’s arrival in Australia.

Overseas
If you are based overseas you don’t need to pay VAT as you aren’t a resident of the UK.  Our clever website can show you prices excluding VAT so you can see what you are paying.  Just because you’re not paying VAT doesn’t mean you’re exempt from taxes (sorry!).  Each country has its own tax system and you may find that you have to pay duties on items that you buy and import into your country of residence.  If you’re unsure about how this works you can find our more information on your government website.

All of our invoices have a line showing the VAT/tax value of the order so you can see what portion of your final bill is tax.  If you are a business filling in a VAT or tax return this will help you with your calculations.

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