eBay and vat registered

[chimera]

Flat Rate VAT is not only suitable for people providing services. Honestly if your gonna go on a forum and call peoples advice crap at least ensure your own is sound first!

What if you purchase for resale from mainly non VAT registered individuals? Many companies unable to reclaim input VAT for various reasons will benefit from the Flat Rate Scheme.

Of course you can also benefit from a further discounted Flat Rate when you first sign up.

My advise to "batter" understand VAT = Speak to the VAT man and/or a qualified Accountant

[e2free]

Originally Posted by chimera

Flat Rate VAT is not only suitable for people providing services. Honestly if your gonna go on a forum and call peoples advice crap at least ensure your own is sound first!

What if you purchase for resale from mainly non VAT registered individuals? Many companies unable to reclaim input VAT for various reasons will benefit from the Flat Rate Scheme.

Of course you can also benefit from a further discounted Flat Rate when you first sign up.

My advise to "batter" understand VAT = Speak to the VAT man and/or a qualified Accountant

I just given that its batter for those who provide services yes off course its batter who are purchasing from no vat but to be honest if your turn over is over 82000 its likely to purchase the goods from no vat company if u read the comments on this thread many talking about buying in bulk so this cant be true they not vat register

as i said 99% are not bother to register vat and their turn over is well over

[GreenBean]

Originally Posted by chimera

My advise to "batter" understand VAT = Speak to the VAT man and/or a qualified Accountant

A thread from the OP on money would be hard to debate because of his entrenched views.

As efree' said it would truly be Goof Luck to get anywhere on the topic.

[stevebills]

Keep under the vat freshold just like all the dodgy builders
Vat is for big company's with big contracts

[chimera]

Originally Posted by GreenBean

A thread from the OP on money would be hard to debate because of his entrenched views.

As efree' said it would truly be Goof Luck to get anywhere on the topic.

True enough.

It gets to me because i have worked with individuals who have both owed and in turn been owed thousands because of bad advise they read online.

Good Luck indeed

[Play]

@e2free - Everyone's circumstance differs. Best for each and every individual to speak to an Accountant. That's the ONLY way each individual business can find out the best route to take.

[dan_ebay]

Originally Posted by e2free

Just seen this thread and noticed most of people don't even understand how vat works specially advised to vetus and others who think flat rate vat is good

It's basically crap in simple words let me explain you

You register for flat rate and normally people pay 8% or 12% depending on your business what u sell

But you can't reclaim vat this is the biggest problem

For example you bought the stuff for £10000 and you paid £200 vat
Now you let says sold for £10000 aswell without making any profit if you on 12% you have to pay another £1200 VAT on this sale so total you paid £2000+1200=£3200 VAT SINCE u can't claim it back

Now of you normal vat then you don't need to pay that much

Sold for £10000 where u charged 2000 vat which you can claim it back so no more vat to pay so total you paid £2000 vat

So what's the batter option?

Flat rate is good for those who only providing services like solicitor or accountants as they don't purchase or sell physical goods

My advise to batter understand vat

Tobe honest 99% sellers are not vat register on ebay and Amazon where u can see their turn over is well over 82000

Goof luck

Except the rate is 7.5% for retail(and 1% discount first year) and nobody sells a item for the same price they bought it for, especially when you have to pay fees and postage, thats why the flat rate is almost always better.

I can guarantee you the flat rate is cheaper than the standard vat rate for 99.9% of ebay sellers so clearly you don't have a clue how vat works lul.
Let me know your product costs and selling price if you like and I'll work it out for you and show you you'd be paying less on the flat rate.

Agree with you on the 99% not paying it though which is why being vat registered is so hard

[e2free]

Originally Posted by dan_ebay

Except the rate is 7.5% for retail(and 1% discount first year) and nobody sells a item for the same price they bought it for, especially when you have to pay fees and postage, thats why the flat rate is almost always better.

I can guarantee you the flat rate is cheaper than the standard vat rate for 99.9% of ebay sellers so clearly you don't have a clue how vat works lul.
Let me know your product costs and selling price if you like and I'll work it out for you and show you you'd be paying less on the flat rate.

Agree with you on the 99% not paying it though which is why being vat registered is so hard

This was just example to explain others how vat calculate if you beleive Flat rate is batter then it's yours choice,

Specially for importer and other big business it's not wotworth since can't claim vat back,

Do u know on flat rate vat u can't claim vat?
It's good way to just get the vat number and show others you are vat register otherwise I can't see any other advantage

Most of users are sell physical goods in my view flat rate is not batter for them

I am not accountant best to see professional accountant for batter advice

[dan_ebay]

Originally Posted by e2free

This was just example to explain others how vat calculate if you beleive Flat rate is batter then it's yours choice,

Specially for importer and other big business it's not wotworth since can't claim vat back,

Do u know on flat rate vat u can't claim vat?
It's good way to just get the vat number and show others you are vat register otherwise I can't see any other advantage

Most of users are sell physical goods in my view flat rate is not batter for them

I am not accountant best to see professional accountant for batter advice

Your example wasn't any good because there was no profit, not even any gross profit.
I don't 'believe' its better, it is better for 95% of ebay sellers, its a undisputed fact. Like I said tell me your purchase and selling price along with any overheads and I can show you its better. You don't need a accountant, you just need to know how to work a calculator. Its simple maths

[JamesNorth101]

Originally Posted by e2free

Just seen this thread and noticed most of people don't even understand how vat works specially advised to vetus and others who think flat rate vat is good

It's basically crap in simple words let me explain you

You register for flat rate and normally people pay 8% or 12% depending on your business what u sell

But you can't reclaim vat this is the biggest problem

For example you bought the stuff for £10000 and you paid £200 vat
Now you let says sold for £10000 aswell without making any profit if you on 12% you have to pay another £1200 VAT on this sale so total you paid £2000+1200=£3200 VAT SINCE u can't claim it back

Now of you normal vat then you don't need to pay that much

Sold for £10000 where u charged 2000 vat which you can claim it back so no more vat to pay so total you paid £2000 vat

So what's the batter option?

Flat rate is good for those who only providing services like solicitor or accountants as they don't purchase or sell physical goods

My advise to batter understand vat

Tobe honest 99% sellers are not vat register on ebay and Amazon where u can see their turn over is well over 82000

Goof luck

Nicely explained in parts but there are a few key points missing

There are a few ways in which items can be purchased without paying the VAT on the purchased price (these is a long old list of exceptions knocking about somewhere)

A lot of people on the forum also import their items and do not (despite being advised against this) pay the correct amount of VAT on the imported items. A lot of this is due to Chinese sellers not willing to declare the true value of goods when exporting to save themselves money.

When importing goods from the EU you also cannot claim any VAT back on that (again there are a few exceptions to this rule)

Its also possible that a lot of sellers here are buying from other small companies that are not VAT registered, which means there is not VAT to claim back

[e2free]

Originally Posted by dan_ebay

Your example wasn't any good because there was no profit, not even any gross profit.
I don't 'believe' its better, it is better for 95% of ebay sellers, its a undisputed fact. Like I said tell me your purchase and selling price along with any overheads and I can show you its better. You don't need a accountant, you just need to know how to work a calculator. Its simple maths

profit? vat is due on sale not on profit or anything else

its simple rule if your turnover is 1k you have to pay vat 2K does not matter whats your profit is unless you say u still have that stock

as James said I agree may seller get stuff from non vat sellers but again someone actually importing them anyway into this county and paying vat on them either full or on low value invoice they will not sell you at cost price off course they will charge u extra and also add vat on that but will not give u vat invoice since they not vat register

prove me if i am wrong

one company imported 1k stuff over the year and let says they sold it for 1.5K

now when they imported they need to pay 20000 VAT unless they undervalue the invoices even if they undervalue the invoices lets say they paid 10000 vat
now they as they sold it for around 1.5K lets assume they had 50000 (evbay paypal fees postage cost etc)

so not made any profit

but vat is on sale

now flat rate register:
he needs to pay vat on 1.5K lets say 8% which is 12000 and he cant claim anything back

normal vat :
as he already paid vat on 1K
now 0.5K left as he can claim back vat, on postage cost, rent, bills all included vat so he dont need to pay anything or maybe very less

so who is batter way?

I maybe wrong but so far i worked it out its always to go for normal rate