VAT threshold

[pomper]

Hi,

I want to register for VAT voluntary because of my supplier who wants my VAT number. I did not exceed the threshold. Do I need to pay VAT if I registered for VAT voluntary and I did not exceed the threshold ?

 

[Scalloway]

If you register for VAT you must charge VAT on your sales but on the other hand you can reclaim VAT on purchases. It makes no difference if you registered voluntarily or not.

 

[FD Analytical Accountants]

Hi Pomper, its goes without saying prior to VAT registration (particularly voluntary) just ensure that you understand the extent of your quarterly VAT liabilities, its worth spending a couple of hours doing this, it could save you a lot of money.

 

[MyAccountantOnline]

... Do I need to pay VAT if I registered for VAT voluntary and I did not exceed the threshold ?

Yes you do.

Have you registered already?

 

[DontAsk]

If you add a lot of value then be prepared for the hit on your margins of the difference between input and output VAT.

I would look for a supplier who is happy to trade with non-VAT registered customers.

 

[Anne T]

I agree, DontAsk. I had to go VAT registered 9 months ago, and as I have to sell my items around recommended RRP's, I have been hit badly. Feel like I am being punished for trying to do well at the moment. When you are hovering just above the threshold it is very hard, as VAT takes a big chunk of your turnover. I now have a very hard push to get turnover much higher. Feel I was better off non-VAT registered. There should be some help out there, or threshold should be raised.