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Vat laws headache - please help
 

Hello

Wondered if I could get some advise with this VAT box for ebay, please

I have 4 accounts that I want to keep separate (and I sell on 2 of my friends accounts)

Account #1 is in my name
Account #2 is in LTD company name
Account #3 (Friend 1 name)
Account #4 (Friend 2 name)


I am registering for VAT tomorrow,(because I import from china (not dropshipping, just inventory) so from the date I apply, I must start charging VAT etc


I dont want to link my accounts, so can I just put in a VAT rate of 20 on each account? This way I am collecting the VAT but is it ok to not imput a VAT Number?

As I am looking at big accounts on ebay that are WAY WAY over the threshold but dont show their VAT number or even company number?

Please advise

Kind Regards

Re: Vat laws headache - please help
 

"All sellers listing on eBay.co.uk will have to provide a gross price and separate VAT rate, so that eBay can determine the correct amount of VAT to collect from consumers. For non-EU/UK sellers, the VAT rate will usually be 0%"

So do I just put in 20% and ebay sort out my VAT?

Re: Vat laws headache - please help
 

Thinking out loud

If I am VAT registered, but selling on 4 accounts

If I just keep 3 accounts to below the threshold, I dont have to let ebay know im VAT registered on these accounts, right?

I just need to work out the VAT myself and send it to HMRC when its needed, would this work?

For the fourth account, I can just input my VAT number and scale this account and keep the 3 sub accounts smaller

As long as I pay HMRC all the VAT that is owed to them, would this work?

Can I still claim the VAT back (like the VAT on FVF on the 3 sub accounts)

Re: Vat laws headache - please help
 

To be honest stealth and VAT is a mess ...

It's perfect if you don't plan on reaching the VAT threshold.

Reason being with stealth you need to use individual bank accounts, which then feeds funds in to your business account. But HMRC will still say we need to see statements of these other bank accounts if they ever investigate and it may raise questions as to what the hell you are doing. HMRC don't know what "stealth" is.

Re: Vat laws headache - please help
 

Just stay below the threshold or if you must, register one for VAT (Ltd company one would be the obvious choice) and go for it on that account and keep the others below. Indeed, you can't register your LTD company for VAT with the same number if you do it as an individual and vica versa.

That would create stock purchase and allocation issues too I guess.

Speak to an accountant and watch their face when you explain your proposed arrangements, best take your friends too.

Stealth and VAT is sure to get messy if/when you get greedy.

Re: Vat laws headache - please help
 

I have to have a VAT number as I import from china

I will register my LTD ebay account for VAT with ebay

Question is what do I do with the other 3 accounts? If my LTD account takes off and I can scale this indefinitely, then no problems, but I like to have options/contingency plans

Can I be self employed? On these accounts?
Is I import from china on my LTD business, pay/claim all the VAT etc so its all above board

I can then sell on my LTD ebay account and process VAT normally etc

Then Can I sell the stock from my LTD company to myself at stock value (provide invoice etc) and sell this stuff on the "stealth" accounts and submit a self assessment tax return based on the sales of these 3 accounts and keep each one under the threshold?

Because myself, "James", is seen as a separate entity to my company "ABC LTD"
So the stock "James" buys from "ABC LTD" is just like me buying from any other UK company right?

Re: Vat laws headache - please help
 

You don't have to register for VAT to import from China.

Like I said, speak to an accountant who will give you definitive answers (and are good value for money once you enter the world of VAT), it would be madness to act based upon advice given on this forum.

Re: Vat laws headache - please help
 

Agree with Hank and James.

Re: Vat laws headache - please help
 

Very true - professional financial guidance