VAT Question

DougDesigns · Feb 24, 2010

I know that this might seem a silly question, but.

I am a sole trader and are not VAT registored. If I buy my goods from my supplier and pay VAT on the item.

Do I then have to charge VAT onto the customer as well?

Vikas · Feb 24, 2010

You are not VAT registered therefore you do not issue VAT invoices.

DougDesigns · Feb 24, 2010

What I mean is if I pay VAT on my mugs from my supplier do I have to add VAT to my products that I sell?

Vikas · Feb 24, 2010

No you don't charge on VAT to your customers even if you are suffering input VAT on your purchases.

You can only charge VAT if you are VAT registered.

Homshaw · Feb 24, 2010

You would have to charge extra to recover the cost of the vat you paid on the goods otherwise you would end up loosing money but you can't call it VAT

KidsBeeHappy · Feb 24, 2010

You buy them for £1+vat, and pay £1.18, and record £1.18 as your cost of sales
You sell them for £2, and get £2 cash, and record £2 as sales
You make 82p profit

Simple as that.

MyAccountantOnline · Feb 24, 2010

printedribbonstore said:
I am a sole trader and are not VAT registored. If I buy my goods from my supplier and pay VAT on the item.

Do I then have to charge VAT onto the customer as well?

No you dont charge VAT - but your sales price willl include an element of VAT. You dont call it that though as you arent registered.

If you are selling to other VAT registered businesses/individuals it may well be worthwhile looking at a voluntary VAT registration so that you can claim back the VAT on your costs.

DougDesigns · Feb 24, 2010

I have just called Nicola HJ and has given me great level of service. Second to none.

I will get her to do my taxes returns.

I would recommend her from first chat.

MyAccountantOnline · Feb 24, 2010

printedribbonstore said:
I have just called Nicola HJ and has given me great level of service. Second to none.

I will get her to do my taxes returns.

I would recommend her from first chat.

Thank you very much - thats extremly kind of you and very much appreciated.

Nicola

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