Importing goods and VAT registration

[AnnT]

I'm planning to import goods from EU and sell them in the UK. I understand I need to pay 20% import VAT once they hit the border.
I assume I will be under 85k threshold for VAT, but in that case, is it worth to be VAT registered? If I am paying import VAT anyway, what are the pros and cons of being VAT registered at this stage?

 

[WaveJumper]

Well I think the first thing you need to do is sit down and look at your business plan, have you factored in paying vat, claiming it back, and what affect will it have to your retail price, how competitive are you going to be reference the competition.

Many a business start by thinking they are undercutting their competitors by not having to charge VAT only to find further up the road when they do need too suddenly the bottom line is not looking so good

Do your sums

 

[lesvatadvice]

You may find it difficult to join the Postponed VAT Accounting Scheme, which will assist with cashflow on your imports, unless you are registered for VAT.