Am I required to charge VAT on my products?

[lizzy chaplin]

Hi there,

We manufacture and distribute bin bags. At present we are not VAT registered and don't add VAT onto our products. However, one of our stockists has questioned this and said Bin Bags are taxable - is this correct?

For context, we have been trading for less than 12 months and sales are under £85,000

Thank you

 

[DWS]

If you are not VAT registered then you can not charge VAT

 

[lizzy chaplin]

If you are not VAT registered then you can not charge VAT

Do you know if bin liners require VAT to be added? I'm wondering if we need to become VAT registered to sell this product?

 

[NicoJ]

You only need to consider VAT if your turnover is over £85,000, you don't need to be registered if your sales are under this. Bin liners would be standard rated though if/when you do register.

 

[Paul Kelly ICHYB]

Have you spoken to your accountant?

 

[Mark T Jones]

As has been said, you only charge VAT if you are registered

As you are selling b 2 b, it might well be worth your which to register voluntarily

You should speak to your accountant

 

[MyAccountantOnline]

Hi there,

We manufacture and distribute bin bags. At present we are not VAT registered and don't add VAT onto our products. However, one of our stockists has questioned this and said Bin Bags are taxable - is this correct?

For context, we have been trading for less than 12 months and sales are under £85,000

Thank you

As others have said no as you aren't VAT registered.

Your stockist has probably simply assumed you/your company is VAT registered.

Who do you sell to?

 

[WaveJumper]

All of the above advice is correct however what you may want to think about now is how is this going to affect your pricing in the future when you do become registered. Are your prices in line with others who are charging VAT (which is why your customer was surprised you are not VAT registered) or are you much cheaper