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eBay and vat registered
 

I was wondering how anyone going vat registered On eBay
Could compete with non vat registered sells as surely this would make the
Items more expensive and loss of sales very fast?

Re: eBay and vat registered
 

Anyone help with this question?

Re: eBay and vat registered
 

What rate Vat are you paying stevebills

Re: eBay and vat registered
 

I'm 99.999% sure stevebills isn't vat registered.

Re: eBay and vat registered
 

Think he is considering the merits of becoming Vat registered...

:pop2:

Re: eBay and vat registered
 

I'm not vat registered and I never would go vat registered on eBay as it would put the prices up

Re: eBay and vat registered
 

Everyone pays 20 percent in the uk so that's a silly question

Re: eBay and vat registered
 

You would be right

Re: eBay and vat registered
 

I can only see the downside of vat registered like higher prices and more book keeping bills and no positives

Re: eBay and vat registered
 

Interesting as I pay 12%

Re: eBay and vat registered
 

Maybe you calculate better than the OP?

:spy:

Re: eBay and vat registered
 

:thumb:...


Maybe the OP should have a look at HMRC website at other options they have to reduce VAT liability ;)

Re: eBay and vat registered
 

Yup! There's fix rate which is great, until you hit the threshold whereby you have to pay the full 20%.

Re: eBay and vat registered
 

Threshold is £250,000

Re: eBay and vat registered
 

I haven't hit it. Bear in mind this is 'turnover'. Any scaled up business would hit that in no time.

Re: eBay and vat registered
 

It's says 20% unless u sell child seats then it's 5%

Re: eBay and vat registered
 

You're talking rubbish - it's 12% for me so you can carry on paying 20% if you wish ;)

Re: eBay and vat registered
 

I thought the limit for flat rate is 150k?

Re: eBay and vat registered
 

£250,000 for me :)

Re: eBay and vat registered
 

Mind sharing?:help:

Re: eBay and vat registered
 

So you pay 12% when you buy off a supplier and sell at 20% so that means you make a profit on the vat and it's all new to me all my suppliers charge 20%

Re: eBay and vat registered
 

I think you are misunderstanding how VAT works there quite a bit...

RE the flat rate
VAT accounting scheme for flat rate is
Threshold to join scheme - £150,000 or less
Threshold to leave scheme - More than £230,000

You can also get VAT retail schemes as well as a few others.

Its worth talking to an accountant about these sorts of things. The forum really isn't going to have the best advise.

You can also do your own research HERE

Re: eBay and vat registered
 

I am also gettting very very close to the VAT threshold. I am in a really tricky situation where I am wondering if it is best to actualyl scale back sales and keep below, or just deal with it.

My issue is most items I sell will need to be put up (then they wont sell other other sellers) or take the hit my end. The thing that screws me is a lot of my products are low ish margins and high volume. That final profit after vat has come out will basically make it not worth doing.

Really stressing me out, as I have gone from having so many plans, built a website, SEO all that jazz and now I am considering pulling everything back just to keep under!

My main stock I buy from Europe and that country only charges 6% VAT whereas we charge 20% on the same thing. This means as non registered it works out great for me, but hinders me even more in a VAT registered world.

Re: eBay and vat registered
 

So why don't you register for Flat rate scheme of 12% hence keeping another 8% for a further £250k of turnover?

Re: eBay and vat registered
 

The original answer was not answered it was side stepped and how can someone charging vat compete with no vat seller?

Re: eBay and vat registered
 

Buy in bigger bulk, better pricing, difference in prices to cover the 12% or at least part of it.

It's a starting block.

Lots of other options with regards to company formation / location which could help.

Re: eBay and vat registered
 

Mainly because this is the first time it was easy to read.... First attempt was mumble/jumble....

Sellers paying VAT usually have a vast range of items that allow them to compete.

Many may even have the luxury of older ebay accounts that have been nutured and grown to be most productivd money wise.

Choice is for a seller to decide the method they want to make money, imo.

Yes, I have VAT registered accounts.

:uk:

Re: eBay and vat registered
 

Not sure what reply you're looking for, there isn't a magic answer. You'll make less profit if you're paying vat than if you're not

Re: eBay and vat registered
 

Buy things for cheaper in larger quantity

There is no other answer really...

Re: eBay and vat registered
 

This. There really is no fix. Its a case of 2 options:

1. Deal with it and pay more tax, encouraging you to push yourself even more to get higher sales, reduce costs etc

2. Reduce sales, dial it back and not hit the threshold

Re: eBay and vat registered
 

The point is, if you get to the stage where you need to register for VAT you are running a substantial business.

Now the problem with eBay business's, run from home, with zero overheads, is people tend to work on very very small margins.

Then when VAT comes into the equasion, it's enough to turn a profitable business into a pointless one.

You need a business plan with sales forecasts, go to an accountant if you are unable to do it yourself, and work out what amount of increased turnover is needed so you are better off.

Then work out if the increased workload is worth it. You may find you have a 30% increased workload to make the same money. However, higher sales equals higher turnover and higher turnover equals better buying power with suppliers.

Re: eBay and vat registered
 

And after that you may find you'd rather stay under the threshold and carry on pondering along.

Re: eBay and vat registered
 

You Should Avoid Registering for VAT for as Long as Possible…

Because when you do, you’ll have to pay more tax, as simple as that. You’ll either have to raise your prices to make up the difference which will make you less competitive OR you’ll
have to lower your profit margin to keep the same pricing as before. And it doesn’t matter how you look at this – when you register for VAT, you pay more tax, PERIOD!

That’s why it’s so crucial to stay away from VAT registration for as long as possible. Applying for VAT voluntarily may be the biggest mistake you ever make; it can simply kill your eBay business as in just one day you’ll become uncompetitive.

Re: eBay and vat registered
 

Seems like you have answered your own question there

Re: eBay and vat registered
 

You could of said that in the first place stevebills - would of saved a 10 page thread ;)

Re: eBay and vat registered
 

He has copy and pasted from another article online which I have read a few months ago and called it his own ;)

I'm not even joking

Re: eBay and vat registered
 

I think I remember reading this from some guy call Andrew too....lol

Re: eBay and vat registered
 

I did find info on google and why would I re type it I'm to fooking lazy :thumb:

Re: eBay and vat registered
 

So there we go vat registered on eBay is a bad idea and will cost you sales and bookkeeping
Will get more expensive so avoid at all cost

Re: eBay and vat registered
 

Don't pay the vat man for even bigger saving but don't get caught lol