VAT and stealth accounts

[eezo]

I know Tax shouldn't really be addressed here but it does relate to stealth account so I thought I would ask.

I have recently gone VAT registered, my accountant has told me I need to charge VAT on everything I sell, my first issue is that I'm not sure how I display that within eBay.

Second issue is that I run multiple stealth accounts but I only have one VAT number, how do I get around that?

Thanks

[JamesNorth101]

You would add the VAT rate you pay to everything you sell, or you absorb the cost yourself.

You dont have to supply eBay with the VAT number, you just need to make sure you pay the correct amount to HMRC

[eezo]

That's what I thought, so I was going to increase the price by 20% on all my items and use that to pay my VAT and just put something on my listing that specifically states the price includes VAT.

That way I don't need to put my VAT number on all my eBay accounts as I assume that would link me.

[JamesNorth101]

It may be better to look at flat rate VAT

[realdeals]

So hard to suddenly add 20% on to your prices and stay competitive.

[eezo]

Originally Posted by realdeals

So hard to suddenly add 20% on to your prices and stay competitive.

Tell me about it, I'm having to seriously look at everything I'm selling. It's odd, I added 20% on Amazon a few weeks ago and if anything my sales went up but I tried it with a few eBay products that are exactly the same as Amazon and sales have dropped. Very hard to judge.

[JamesNorth101]

Flat rate does reduce it to a lot less so really is worth looking at

[eezo]

I've never heard of flat rate vat, just pinged off an email to my accountant to see what he thinks.

[dan_ebay]

lol you need a new accountant if he didn't even mention the flat rate, its 7.5%, 6.5% in first year but you can't reclaim any vat. You can only stay on it up to £230k turnover though

[JamesNorth101]

Your accountant really should have mentioned that to you

[eezo]

I've just spoken to him, he said the flat rate depends on my purchases. My outgoings are high and says the FRS is better for individuals with hardly any expenditure.... so I gues it wouldn't be any use to me.

[Ebayorbust]

Originally Posted by eezo

I've just spoken to him, he said the flat rate depends on my purchases. My outgoings are high and says the FRS is better for individuals with hardly any expenditure.... so I gues it wouldn't be any use to me.

Yes, it depends on how much VAT you are paying on your purchases & expenditure as to which route is best.

[dan_ebay]

Originally Posted by eezo

I've just spoken to him, he said the flat rate depends on my purchases. My outgoings are high and says the FRS is better for individuals with hardly any expenditure.... so I gues it wouldn't be any use to me.

Not really hes talking rubbish, can almost guarantee you'll be better off on the flat rate even with low profit margins as you're effectively having to charge vat on top of the postage and ebay/paypal fees aswell. Individuals with low expenditure (not retail) pay a higher % on the flat rate aswell anyway. He should be working out which is better for you anyway, email him your best selling products purchase and sales price and tell him to do some work

[vetus]

12.5% is really a middle ground - seems higher than the 6.5% - 7.5% but low expenditure means slightly higher flat rate.

Does depend what type of business you are running as well, not all types of businesses qualify for it.

[ghettotige]

Anyone had an inspection from the Vat man yet? Wondering how they will react to multiple accounts and money funnelling in to one business account from multiple personal and savings accounts.
In my 22 years in retail I have had 4 Vat inspections, normally triggered if you need to reclaim vat.But as yet fingers crossed, touch wood, no inspections since stealth.