View Full Version : Do I need to be VAT registered?
walker1234
29th June 2009, 19:24
OK so I have been trading for 6 months selling concert tickets and want to know if I have to be VAT registered or whether its voluntary and if so if it's worth it.
As far as I can see I dont seem to be paying VAT on the purchase on the tickets initially (or at least theres no breakdown) but I do pay VAT on the commission element of reselling them via a broker. I take it I wouldnt charge VAT either?
Help appreciated.
Geoff T
29th June 2009, 20:31
OK so I have been trading for 6 months selling concert tickets and want to know if I have to be VAT registered or whether its voluntary and if so if it's worth it.
As far as I can see I dont seem to be paying VAT on the purchase on the tickets initially (or at least theres no breakdown) but I do pay VAT on the commission element of reselling them via a broker. I take it I wouldnt charge VAT either?
Help appreciated.
registration is voluntary till turnover hits a certain level - I think it's about 67k (xperts bound to confirm later!)...
As for whether it's worth it...it depends how much you'd pay vs how much you'd get back...you know what it is from OP. just need to put numbers to the principles stated...
regards
Geoff
walker1234
29th June 2009, 21:25
Hi, I think the bit I'm unsure of is exactly how much VAT I could claim back as I am not sure if I can claim back any VAT on the original purchase of tickets as i can't see it broken down anywhere on any order.
Geoff T
29th June 2009, 21:49
Hi, I think the bit I'm unsure of is exactly how much VAT I could claim back as I am not sure if I can claim back any VAT on the original purchase of tickets as i can't see it broken down anywhere on any order.
the way I understand Vat is they have to show a VAT amount if they're charging it, but don't forget all the other places you pay for VAT...business expenses, stationary etc?
mahutchinson
30th June 2009, 14:26
If someone is registered for VAT they need to show it as a separate item and should also have their registration stated on the invoice. Anything you pay VAT on can be reclaimed. Conversely, you charge VAT when you are registered and, again, need to show the VAT as a separate figure. Some people find voluntary registration useful either for status or to keep their books in order quarterly.
As Mike said the people you are buying the tickets from should be showing VAT seperately on the invoice if they are VAT registered. This can be claimed back.
If they are not VAT registered obviously there is nothing you can claim back.
You can then only charge VAT in your sale price if you are registered.
Then after 3 months you take your input/output VAT and file a VAT return which thus leaves you with a bill to pay or a refund to claim.
Take a look at: http://www.hmrc.gov.uk/vat/index.htm
wilkinson12
10th October 2010, 13:18
From someone in a similar position a year later did you ever resolve the issue ?
OK so I have been trading for 6 months selling concert tickets and want to know if I have to be VAT registered or whether its voluntary and if so if it's worth it.
As far as I can see I dont seem to be paying VAT on the purchase on the tickets initially (or at least theres no breakdown) but I do pay VAT on the commission element of reselling them via a broker. I take it I wouldnt charge VAT either?
Help appreciated.