Business on ebay

[ulitich]

Hello, I would like to start my own business on e-bay. I would like to buy wigs from China and sell them online. I have a good supplier already. I know that I need to register like self-employed. Do I need to register for VAT as well? (My turnover will be less than 79,000 ) But I would like to claim back VAT which I need to pay on import. Is it better to register for VAT or not? What else I need to pay on import from China if I buy wigs? I would like to do everything legally. My supplier from China said that he can reduce my VAT, to write down the wrong sell price. He says he often does it. But it is illegally. Does anyone can help me on that? What is the best way to save money? Many thanks.

 

[StevensOnln1]

When you import goods from outside the EU you will pay VAT and import duty. If the seller writes a lower value on the shipping documents than the actual cost of the goods, you will be undercharged on VAT and import duty which would land you in hot water with HMRC if you get caught.

If you register for VAT you will be able to reclaim VAT on your purchases (including import VAT) but you will also need to charge VAT on your sales. If you are selling mainly to VAT registered businesses then you're probably better off being VAT registered yourself, as they will be able to reclaim the VAT you charge them. If you're selling to mainly individuals and non VAT registered businesses, they will not be able to reclaim anything so you will be more expensive than if they buy from someone who isn't VAT registered.

 

[ulitich]

Many thanks for your reply. Is it possible to reclaim import VAT if I am not VAT registered?

 

[ulitich]

If you're selling to mainly individuals and non VAT registered businesses, they will not be able to reclaim anything so you will be more expensive than if they buy from someone who isn't VAT registered.

I think when I sell on ebay, VAT is including in the selling price already, am I right? And if I register like non VAT business seller I can reclaim VAT from ebay.
I would like to start selling on ebay first, then to create my own website.

 

[StevensOnln1]

You can only reclaim VAT if you're VAT registered. The seller should state in the listing if their charging VAT on ebay.

Sent from my GT-P1000 using UK Business Forums

 

[arcon5]

I've never ever seen an auction on eBay that is exclusive of VAT. So if you sell an item for £4.80, factor in the fact 80p goes to the tax man (if you are registered).

No you cannot reclaim vat and not be registered.