Sections:

A About EcoQuest UK
B FAQs relating to Direct Selling in the UK
C Taxation issues (VAT)
D International Dealers – Sponsoring and Ordering

Section A: About EcoQuest UK

Who is EcoQuest UK? (top)
We are the UK distributor for the EcoQuest range of products, supplying to the whole of the U.K. with the addition of Ireland. We will be supplying to the UK Dealers those products that are listed on the U.K. Price List, and viewed on our website: www.ecoquestuk.co.uk.

Quick History of EcoQuest UK (top)
Since1997 Air Industries and now newly named EcoQuest UK have been ‘Retailing' the complete range of Alpine/EcoQuest range of Air Purification systems. Up until December of 2002,the UK operation has also been re-engineering this range of products to suit UK/European requirements, but are nowreceiving ‘ready-to-ship' systems direct from Greeneville, but still retain the engineering knowledge and expertise to fully support this unique range systems and our Dealers, whilst they develop the European markets.

With over two hundred accounts, many of which are multiple-sites in such diverse industries as;

EcoQuest UK is the natural partner for this truly International Group.


What EcoQuest products are available inthe UK ? (top)
CE compliance is often discussed here in the U.K., and frequently in commercial sales this can be insisted upon. However in domestic sales the customer is generally more concerned with benefit, and “fitness for purpose” criteria. For the current range of products available in the UK, refer to the section ‘Products' on our website.

All products are sold through our network of Dealers,and not directly by EcoQuest UK


How much do the Products cost? (top)
If you wish solely to purchase one of our products, then use the ‘Contact Us' facility on our website or telephone us for the RRP and the name of a local dealer.

All prices are subject to the UK (purchase tax) VAT at17.5%.


How do I become a Dealer? (top)
You can either complete a Dealer Agreement form given to you by an existing dealer who may well sponsor you, or you can complete our on-line Dealer Agreement form on our website. The annual fee for a Dealer in the U.K. is £30.00,and is payable by credit card, or (if you are resident in the UK) by a cheque made payable to EcoQuest UK Limited.

If you do not have a sponsor, then telephone our office on 01483-281144.

If you are an International Dealer and you are Sponsoring a Dealer in the UK, then see the section: ‘InternationalDealers – Sponsoring and Ordering'

Please read the section : FAQs relatingto Direct Selling in the UK.


How do I order product? (top)
As a Dealer, you can order any product by telephoning our office on 01483-281144.

Remember to have your credit card details ready!  

Section B: FAQs relating to Direct Selling in the UK

Do network marketing (direct selling) businesses and dealers (direct sellers) have to be licensed? (top)
The general answer is No.

The rules governing the establishment of a network marketing(direct selling) company are the same as for any other business – although VAT treatment is different - see the section below: VAT issues.

Similarly, Dealers (direct sellers) who collect orders for subsequent delivery do not have to be licensed, although licensing requirements are required in the Isle of Man and in the Channel Islands.


What legislation governs direct selling in the UK? (top)
There are only two pieces of consumer protection legislation concerning direct selling:

Order cancellation rights – this is governed by The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1987 . This law requires that any unsolicited transaction over £35 in value, requires that the customer be given a statutorily prescribed notice giving them 7 days in which to cancel an order and get their money back. However, EcoQuest UK in line with the Direct Selling Association (DSA) Consumer Code of Practice (see below), is required to give customers 14 days cancellation rights, for an order of any value and no matter whether the order was solicited or unsolicited.

Multilevel legislation – If any business opportunity permits participants to benefit from the sales of those they introduce in the business, they are likely to be required to conform to the Trading Schemes Act 1996 and the Trading Schemes Regulations 1997 . The law limits to £200 the value of any investment, within the first 7 days, and requires that participants to be given a contract which contains the terms of business; defines a specific recruitment offence and also contains prescribed warnings relating to 14 day cancellation of the contract and promotional materials.

In addition to the above legislation, EcoQuest UK adheres to the two following Codes as a member of the DSA and expects its dealers to have read and abide by their contents:

(1) Consumer Code of Practice (see the DSA website www.dsa.org.uk , in A Business of Your Own / Codes of Practice for a copy), and
(2) Code of Business Conduct (click here for printable copy)


Do direct selling businesses have any responsibility for the tax liabilities etc. of Dealers? (top)
The answer is No, if dealers are self employed(see definition below), although Direct Selling Organisations (DSOs), maybe required periodically to submit details of payments made to dealers.

Dealers are personally responsible for:
• Declaring their earnings to the Inland Revenue for income tax purposes
• Registering with the Inland Revenue within 3 months of taking up an earnings opportunity


What is the normal employment status of a dealer? (top)
Like most network marketing (directselling) organisations, EcoQuestUK offer independent earnings opportunities. This is appropriate, as many of those to whom network marketing appeals are in other employment and wish to work on a part time basis in hours of thei rown choosing.

Currently, there is no official definition of self employment but, increasingly,the Inland Revenue and the Department of Trade & Industry(DTI) are using the following test of genuine self employment:

• Their working hours and methods of working are not dictated by a DSO
• They are, at their discretion, able to appoint someone else to do allor part of their work for them
• They could lose money (either by incurring losses in a buy/re-seller relationship or in the incidental costs in running their business).


Section C: Taxation Issues (VAT)

What are the VAT rules for direct selling? (top)
In conventional selling, VAT is payable on the retailsales made by VAT registered businesses or individuals. Under a special VAT directive, HM Customs & Excise may require direct selling business to remit VAT on the value of the retail sales made by independent non VAT registered dealers.

This means, if a dealer is not VAT registered, then EcoQuest UK must charge VAT on it's invoice to the dealer at 17.5% of the RRP. So the dealer will be paying more to EcoQuest UK for the product and unable to reclaim the VAT.

For example with pretend Product ‘Nice Air’:

As you can see, the profitability on being VAT registered is greater. Not only can you reclaim VAT on the purchase of the units from EQUK, but also on other business expenses.

And so, EcoQuest UK strongly recommend that all Dealers becomeVAT registered.

(If any dealer's sales income exceeds the current threshold of £58,000, it is mandatory they personally register for VAT).

What do I do to become VAT registered?
The registration for VAT couldn't be easier! You can print the form from the HMCE website: www.hmce.gov.uk/forms/formsvat/formsvat.htm Select form VAT1 and print.

When completed, send to: National Registration Unit, HM Customs & Excise,Ty Myrddin, Old Station Road, Carmarthen SA31 1BT .

You will be required to complete a VAT return every three months and send a cheque for excess VAT owed (ie. VAT applied tosales less the VAT applied to purchases).


What are the VAT rules for bonuses? (top)
Again under a special VAT directive, HM Customs & Excise require direct selling business to remit VAT on the value of bonuses paid to VAT registered dealers. For example, if a VAT registered dealer earns £100 bonus, the EcoQuestUK will send a cheque for £117.50 with a self-billing invoice. The Dealer on his quarterly VAT return will remit this to the HMCE but still retains the £100 earned.


How EcoQuest UK are applying the rules of the Special VAT Directive (top)
The special VAT directive (relating to Direct Selling) and the ir rules for the charging of VAT is based on the ‘selling on’ of the products sold to the Dealer. Therefore, EcoQuestUK will apply the following rule:

The first purchase is assumed to be for the Dealers own use (for demos, trials, home use etc.) and therefore the VAT will be charged on the Dealer price. However, further units without proof of VAT registration (ie. Reg. no. or copy of application), the VAT will be charged on the Recommended Retail Price.


Section D: International Dealers – Sponsoring and Ordering

How do I register/sponsor a Dealer in the UK? (top)
The quickest and easiest way to register a Dealer is using our on-line Dealer Agreement form on the UK website: www.ecoquestuk.co.uk .The annual fee for a Dealer in the U.K. is £30.00.

A UK Dealer cannot be registered through the EcoQuest International website.


How does my new Dealer order product? (top)
The Dealer can order any of the UK products by telephoning our office on 01483 281144.
Remember to have their credit card details ready!


Will I earn PV/QV on a UK Dealer I sponsor? (top)
If someone outside of the UK sponsors a new Dealer, they will still earn PV/QV as usual, and as indicated on the UK Price List.


Will EcoQuest UK train and support my UK Dealer? (top)
Although it will be up to the respective Dealers 'up-line' to carry out their own recruiting and also to supply the support that they will undoubtedly require whilst they begin to build their own Network. EcoQuestUK will be organizing and hosting Training days, where the UK Dealers will be able to attend, and also bring along their prospective Dealers with them.

There may well be a small charge made from time to time to help towards the costs involved, and almost certainly there will be sponsors/speakers visiting from the USA and participating in these events.

All of which we will endeavour to advertise on our website and ALL Dealers and Potential Dealers will be given the opportunity to enrol and be present at these forums.


How and When can I contact EcoQuestUK? (top)
Telephone us on 44(0)1483281144

Try and remember that we are 5 hours ahead of USA Eastern time, and therefore cannot be reached after 1300 hrs Eastern time, unless of course by email.


Can an International Dealer place an order to go to a UK Customer? (top)
No. Due to UK legislation, products for UK Customers can only be ordered by a UK Dealer.


What taxes are there in the UK? (top)
In the U.K. the purchaser has to pay the Value Added Tax (VAT) at point of purchase, but they will also charge the same percentage (currently 17.5%) on the retail price of the product when they sell it. This means that the Dealer will have received more VAT than initially paid out, because they would have made VAT on the Retail Profit. This difference MUST be paid back to the government in a quarterly VAT return, providing that they are VAT registered.

EcoQuest UK strongly recommend that all Dealers become VAT registered, because the profitability is greater not only as you reclaim VAT on the purchase of the units from EQUK, but also on other business expenses , such as petrol (extremely high in the UK!), their telephone bill, etc…

See section entitled: VAT issues.