New business VAT denied

[Mvarley]

Hi all, I've recently started my own computer retailing company and we applied to be VAT registered but have had it denied due to insufficient evidence of intent to trade. Can anyone offer advice on how we can prove to HMRC that we will be trading, a VAT number was almost critical to registering with the suppliers and wholesalers we want to be using. Any advice is appreciated.

 

[Alan]

Are you Limited or Self Employed?

 

[faradaykeynes]

Oh God these computer suppliers insist on vat registered company, I don't know why is that big deal, you reminded me my time back in 2010 when i started my part time online IT selling company.

Do you have any orders perhaps locally?

Try get some orders from like CCL or spire, let me know if you need help with spire, i still know few contacts from there perhaps they can create your account and help you gather enough proof for vat man

 

[Mvarley]

Are you Limited or Self Employed?

We are a limited company and only recently registered with companies house. We haven't begun trading yet but have every hopes to do so soon, unfortunately our existing model requires us to be VAT registered in order to establish supply, we really don't want to redraw a business plan in order to trade without VAT.

I understand HMRC's stance on ensure all applicants are genuine, but as a would-be trader, how do we prove intent to trade as a new limited business? Thank you.

M.Varley

 

[Mvarley]

Oh God these computer suppliers insist on vat registered company, I don't know why is that big deal, you reminded me my time back in 2010 when i started my part time online IT selling company.

Do you have any orders perhaps locally?

Try get some orders from like CCL or spire, let me know if you need help with spire, i still know few contacts from there perhaps they can create your account and help you gather enough proof for vat man

Most suppliers demand VAT numbers now in IT.
I'll have a look at CCL & Spire, naturally your help is appreciated, thank you

 

[faradaykeynes]

Let me know your & company details if you like, i can copy in email to spire and one local suppliers here in Milton Keynes, they have good products and prices too.

Are you working on drop ship model? if yes then depending on your choice of e-commerce platform you can feed in products and prices from suppliers site to yours.
I had at one stage listed about 30,000 products from MicroP, spire and computer2000

I stopped online IT thing now, no time bcaz now full time in accountancy practice BUT i still have demo site (checkout disabled) all products are from spire, site is called www.pcitshop.com

 

[Mvarley]

I'll pop the details in a PM.

It is a drop ship model for the initial phase, this is set up to raise capital for our next phase.

 

[internetspaceships]

Oh God these computer suppliers insist on vat registered company, I don't know why is that big deal, you reminded me my time back in 2010 when i started my part time online IT selling company.

I'm sorry but I can't agree with this. Bearing in mind the VAT threshold and the margin on computer hardware - working for under the VAT threshold isn't even worth bothering with. Notwithstanding the fact that business clients do tend to still prefer to deal with VAT registered companies.

The OP is trying to do it properly. Maybe he doesn't want a bedroom company drop shipping. Maybe he wants a real business Omer.

 

[Mvarley]

is there any advice on how i can improve a VAT application as a new starting business?

 

[Alan]

What wording did you actually use in box 6 (business description) as I think this is the only place that judgement that you are not a business can be made.