pay tax on paypal sale

[deemasfashion]

if i sale 2-3 dresses monthly from my website. should i have to pay tax/vat on the sale or is it exempt.

 

[Enterway]

As long as your business is operational in the UK you will be subjected to taxes. It is wise to keep your invoices and receipts for your annual return where HMRC will evaluate your financial position and determine the level of tax you have to pay

 

[deemasfashion]

Thanks for your reply.

I understand about the income tax.

would you please tell me that is VAT is applicable on my sales or it will be applicable when my total turnover is more than 2000gbp.


thanks

 

[Enterway]

Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £73,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT.

As you do not it may in most case be applicable that you do not need to apply for VAT and would therefore not be able to charge for VAT to customers.

VAT registration notification for businesses that do not have a UK place of business who sell to UK customers can only apply for VAT if their threshold is above £73,000. If you have to register for VAT but you don't live in the UK or have a place of business here, then you must register as a Non-Established Taxable Person with HMRC. IN your case I would not think at this point you would be required to apply for VAT

You must print the form from HMRC website. Complete it, and then send it to:
The Non Established Taxable Persons Unit (NETPU)
HM Revenue & Customs
Ruby House
8 Ruby Place
Aberdeen
AB10 1ZP

 

[deemasfashion]

Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £73,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT.

As you do not it may in most case be applicable that you do not need to apply for VAT and would therefore not be able to charge for VAT to customers.

VAT registration notification for businesses that do not have a UK place of business who sell to UK customers can only apply for VAT if their threshold is above £73,000. If you have to register for VAT but you don't live in the UK or have a place of business here, then you must register as a Non-Established Taxable Person with HMRC. IN your case I would not think at this point you would be required to apply for VAT

You must print the form from HMRC website. Complete it, and then send it to:
The Non Established Taxable Persons Unit (NETPU)
HM Revenue & Customs
Ruby House
8 Ruby Place
Aberdeen
AB10 1ZP

Hi
thanks you very much man. your answer have helped me alot.
that means if my total turnover of 12 months is about 12000gbp then i dont have to apply for VAT.

 

[deemasfashion]

What If i am operating an post office and have already registered for VAT in UK. then i start a new business online only for selling of clothes. but i don't have anything on ground like no shop, no display and no papers or registration. My total turnover or sale for the 12 months is about 12000gbp. then should i pay for VAT ?

 

[GraemeL]

Hello Zara,

I see you have a signature of Deemas Fashion Limited. Do you have really a Limited company or have you used the Limited just for the site? I am asking this because its unusual (though perfectly acceptable) to have a Limited company with the relatively small sales that you mention.

If all of the sales you mention go through the Limited company, then you do not have to register for VAT until your sales reach £73,000 in one year. However, you cannot charge VAT to your customers, nor can you reclaim VAT on your purchases.

Hopefully, your sales will reach £73,000. You will then have to register for VAT and you must begin to charge your clients VAT. So your customers will pay 20% more, which could be a shock to them.

If you want, you can voluntarily register for VAT even if you sales are not £73,000. There can be advantages of doing so.

 

[madrilian]

Who do you sell the dresses to ?

If your customers are outside the EU, that does not count as Vatable turnover.

 

[deemasfashion]

Thank you "GraemeL" very much.
i have just put Ltd. in footer to show it like a company and i am a fashion designer so basically i never knew that it is a big thing or i need to do something for it. I sale Latest Pakistani Fashion Dresses

Now One thing is sure that i don't have to register for VAT.

 

[deemasfashion]

Who do you sell the dresses to ?

If your customers are outside the EU, that does not count as Vatable turnover.

My main clientele is in UK.

 

[GraemeL]

Thank you "GraemeL" very much.
i have just put Ltd. in footer to show it like a company

It is illegal to show the term "Ltd" if it is not true. You should amend that immediately!

 

[penquanash]

If you have set your business as a sole trader, then you can voluntarily register for vat. The main advantage is that it will enable you reclaim all vat on your purchases.