Should I register for VAT?

[ChipRivers]

I am contemplating an ecommerce website where all of my paying customers will be businesses that themselves are likely to be VAT registered. My turnover is not likely to reach the requirment to register for VAT myself but would it be recommended that I do so that I can provide VAT invoices to my customers?

If I do register for VAT, what do I have to do? Do I have to pay to do so? What else is involved?

 

[KM-Tiger]

would it be recommended that I do so that I can provide VAT invoices to my customers

That wouldn't be the reason. If you don't charge VAT there is no need to provide a VAT invoice. It doesn't matter to a registered business, other than it *might* make your business look more serious. The advantage is for you to reclaim VAT (is there any?) on your inputs

If I do register for VAT, what do I have to do? Do I have to pay to do so? What else is involved?

Look at www.hmce.gov.uk. The info you need is there.

 

[ChipRivers]

With the project I am working with I am selling a service rather than a product and therefore there is not really much in the way of expenses that I could claim back VAT on in comparison to the amount that I would be charging on my sales.

Would I be right in thinking that even though my turnover would be low, if I register for VAT I would have to charge it. Therefor if I sell my service at £117.50, if I am VAT registered I would only have £100 profit per sale as apposed to be able to keep the whole £117.50 per sale if I was not VAT registered. (basic exampleonly to demonstrate point!).

If the above is correct, that would mean by registering for VAT, I would be throwing away a huge amount of my revenue!

 

[DuaneJackson]

Yes, the above is correct. Or you can charge a further 17.5% to your clients. That way your profit stays the same - and if they are VAT registered it makes no difference to them if you charge VAT or not.