janie

I have the opportunity to be sole distributor for some fantastic new childrens toys and associated products.I have been working on a business plan for the past couple of months.Could anyone help with a couple of things I'm not sure about please.I am being given conflicting advice regarding VAT payable on a consignment from Hong Kong. I believe I have to pay VAT on CIF cost-insurance-freight. My supplier doesnt think I should be paying VAT on cost of imported goods from Hong Kong as they are coming from outside Europe.Is VAT payable on all childrens products from Hong Kong... what about childrens clothing?Also, I have quotes for shipping, duty, customs payable, but what does CAF mean?Finally,my main product should retail at between £25-£28, I would appreciate an idea of what major stores would likelyto want to purchase them for before VAT added.Any help greatly appreciated.Thanku...My products are not software, but a couple of shipping quotes I have received have included CAF. Would I expect a reduction in quote for this?Not sure if I made it clear in my question,... but I'm looking for advice regarding profit margin major stores expect...(not which major stores to approach)

MikeM

VAT is payable on all goods being imported TO the EU.you will also have to pay import duty etc...Retail outlets want and need 50-60% profit on non electrical goodsCAF Content Adapatation Framework - usually part of a software system.. are you developing software or just import and sales?For wnat is ansd is not covered by VAT go to the HMRC web site - this will change after each budget so keep an eye on it!