Pre Start Supplement Company

Discussion in 'Accounts & Finance' started by Aiden8889, Oct 13, 2018.

  1. Aiden8889

    Aiden8889 UKBF Newcomer Free Member

    3 0
    Hi, I'm planning on starting a supplement company and I'm unsure on how I go about figuring how much VAT I will be paying...

    So an example product would be

    Whey Protein
    I'd buy this from the supplier at: £10.89/kg

    Shipping from supplier is free

    I'd sell the protein at £21/kg inc VAT to be competitive

    VAT is 20% so that would be £21 - £4.20 = £16.80

    So if I managed to shift 50 1kg tubs of protein that would give me £295.50 profit out of the £1,050 50 tubs sold for, is this correct?
     
    Posted: Oct 13, 2018 By: Aiden8889 Member since: Oct 13, 2018
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    9,765 1,018
    VAT is 1/6th of what the buyer pays (its a 20% added tax, so you add 20% to the price you want to get for you) so on £21 would be £3.50.

    You are doing free shipping too?

    If charging shipping you'd charge VAT on shipping too.

    Oh and the £10.89 - is that after VAT or is it the listed price your supplier has which is normally excluding VAT?
     
    Posted: Oct 13, 2018 By: Mr D Member since: Feb 12, 2017
    #2
  3. Aiden8889

    Aiden8889 UKBF Newcomer Free Member

    3 0
    Ok I could probably charge that with a flashy label and a nice tub and still compete.

    Well for now I want to stay Domestic to the UK I've just posted a thread about couriers to use as you replied as I need to look into this.

    My supplier is based in Poland so will I have to pay VAT on these, I found them on Alibaba and they emailed me a price list but saod nothing about tax, I'd assume the tax was added in their prices, Also they ship to me for free.
     
    Last edited: Oct 13, 2018
    Posted: Oct 13, 2018 By: Aiden8889 Member since: Oct 13, 2018
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    9,765 1,018
    Check with them about what you will pay.

    And yes, good packaging can generate far more than it costs. Spend a pound on presenting something nicely and charge £5 to £10 extra for the item.
    Look at what the shops sell for a premium price - the difference in packaging between that and basic...
     
    Posted: Oct 13, 2018 By: Mr D Member since: Feb 12, 2017
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

    13,818 2,953
    When buying from other EU countries you should quote your VAT number. The supplier will the zero rate the VAT.
     
    Posted: Oct 14, 2018 By: Scalloway Member since: Jun 6, 2010
    #5