> -----Original Message----- > From: Bob Walkden [mailto:[EMAIL PROTECTED] > Sent: 14 September 2003 21:18 > To: Rob Brigham > Subject: Re: pentax-discuss-d Digest V03 #984 > > > Hi, > > Sunday, September 14, 2003, 8:52:45 PM, you wrote: > > > Yep, and the sales these dealers are making WILL result in the > > exchange of goods/services. It is an order only if no > commitment has > > been made, once this has been done (usually financial, but > could be a > > legal > > commitment) it is a sale - ask the IRS. If you buy > something on ebay or > > any other way, the sale is made when you send the cash, not when you > > receive the goods. Doesn't matter what part of the world > you are in - > > its all the same. > > this is not the case in the UK. The Inland Revenue has the > notion of a 'tax point'. This is the date when the seller > becomes liable for tax on the goods sold. It is normally the > date when the goods are exchanged. For mail-order sales that > means the date when the seller despatches the goods. Ordering > something doesn't constitute a sale.
Not making myself out to be a tax lawyer here, but I think that is wrong. We, and any other company I know gets taxed based on when the invoice is raised - it is not connected to despatch in any way. It just happens than many mail order companies don't charge you until despatch. However, many of the camera retailers are at least charging deposits for the istD now - and the money is being taken immediately. Perhaps this area is a little more grey, admittedly. > This is also true from the charging point-of-view. The seller > will debit your account only after the goods are despatched, > not before. However, when you placed your order the card will > have been authorised and your 'open to spend' figure reduced, > awaiting confirmation of the sale, or some time for it to lapse. Erm, no! I have NEVER seen a seller who doesn't take payment before goods are despatched. What if payment cannot be met? Authorisation does not GUARANTEE payment. Fair enough, they may try to leave it as late as possiblye prior to despatch, but they wont ever release the goods until payment has been made. > I suspect, but don't actually know, that this would also be > the date when a change of legal ownership is established. That one is even more tricky... Boden (www.boden.co.uk) sell clothes with a 3 month return for refund and it doesn't matter why policy. Their terms state that the transfer of ownership doesn't take place until after that period! Not sure if it would ever stand up, but pretty weird sounding eh? > As far as I know (having been in charge of financial systems > for the .co.uk part of a US dot.com) the same rules hold > throughout Europe and the USA. They may vary in other countries. My experience is similar, so I don't quite understand how your opinions are reached... As I said, I am not a tax awyer though, but my experience was pretty clear cut up till now.
