Help please? VAT issue

[ukbrownie]

I know this could have been asked before but.

I registered as a VAT Exempt sole trader account. Now I would like to import stuff from another EU country like Italy and Malta. Since I am exempt, my suppliers in these countries can't find my VAT number as a valid one so they want to charge me VAT!.

I am confused on how should I price my items. So I pay the Italy VAT when I purchase the items (22% I think) when Items arrive I add my margin but then do I add another 15%? or I add nothing at all since I am exempt? The confusing thing is, the Vat dep told me I don't need to add VAT but an accountant told me that I would need to add.

The accountant told me that if I buy an item from Italy that cost 1 GBP + 22c VAT. And I add a margin of 50% to Item. So the Cost now is 1.83. I need to add the VAT difference. So +15% which is .27c then subtract it with the Italy VAT paid. The 22c. So I need to add 5c. So final price 1.88.

Which is true???

 

[FluxServices]

I know this could have been asked before but.

I registered as a VAT Exempt sole trader account. Now I would like to import stuff from another EU country like Italy and Malta. Since I am exempt, my suppliers in these countries can't find my VAT number as a valid one so they want to charge me VAT!.

I am confused on how should I price my items. So I pay the Italy VAT when I purchase the items (22% I think) when Items arrive I add my margin but then do I add another 15%? or I add nothing at all since I am exempt? The confusing thing is, the Vat dep told me I don't need to add VAT but an accountant told me that I would need to add.

The accountant told me that if I buy an item from Italy that cost 1 GBP + 22c VAT. And I add a margin of 50% to Item. So the Cost now is 1.83. I need to add the VAT difference. So +15% which is .27c then subtract it with the Italy VAT paid. The 22c. So I need to add 5c. So final price 1.88.

Which is true???

If your cargo is coming from Italy you dont have to pay VAT because you are already paying your VAT within the EU.

Cheers

 

[JGOffshore]

I don't understand what you mean that your registered as a VAT exempt sole trader. I presume that you just mean that you haven't registered for VAT and so when you buy goods in the UK are paying 15% (previously 17.5%) VAT which you absorb into your prices. Buying from Italy is exactly the same but you are paying Italian VAT instead.

In the UK you have VAT Taxable Supplies (Standard, Reduced or Zero Rate). You also have Exempt Supplies (financial costs, travel etc) and something called "Outside the Scope of VAT" - wages, purchases from non-EU countries etc. You can ONLY register for VAT if you make taxable supplies.

 

[ukbrownie]

I don't understand what you mean that your registered as a VAT exempt sole trader. I presume that you just mean that you haven't registered for VAT and so when you buy goods in the UK are paying 15% (previously 17.5%) VAT which you absorb into your prices. Buying from Italy is exactly the same but you are paying Italian VAT instead.

In the UK you have VAT Taxable Supplies (Standard, Reduced or Zero Rate). You also have Exempt Supplies (financial costs, travel etc) and something called "Outside the Scope of VAT" - wages, purchases from non-EU countries etc. You can ONLY register for VAT if you make taxable supplies.

Yes I have a VAT no it is exempt because of the low turnover this year. So when I buy from a UK supplier, he sells me with VAT, I add my margin and that's it? Or do I have to add extra VAT for my margin?