Register a limited company £12, and then apply for VAT voluntarily.
Why are you telling him to set up a company, why are you telling him to Register for vat, and why does someone think profits of £5k won't be applicable to tax.
This thread is just dangerous.
I suggest you do a lot more research before you get yourself in trouble
This. No offence @Muhammad8585 but it does read like you think there's 'easy money' out there. Reselling branded goods really isn't a big money spinner and you'll need clout and connections.
I suggest you think this through and consider other avenues. Good luck
...if you're just planning 'toes in the water' then how about buying up bargains/glitches posted on HUKD and reselling? Even better, find those bargains yourself - buy during sales and promos, sell after those discounts die. (edited)
Your confusing Import tax with VAT. Everyone has to pay import tax, whether you are VAT registered or not. I like your enthusiasm though, so good luck.
Are you purchasing for a business?
Author
Yh basically to resell
If you are bulk buying and selling on a large scale You are required by law to register as a business seller,
Author
What about like 10 quantity of a item but I just want to try it out? So I can register as a business seller on eBay but then would I be able to avoid the import tax?
I think it might be better to register as a sole trader, but if it's only a few items hold off registering for anything.
Well I didn't expect to see Donald Trump on here asking for business advice.
You still need to pay the VAT, but later, after you've sold the goods.
have a read about VAT on the HMRC site and ask your accountant if you have one
with VAT the buyer has to pay this when they purchase goods. if VAT registered you can reclaim the input VAT on purchases against the VAT charged on sales. you don't avoid paying the VAT in the first place on purchases
'...in this world nothing can be said to be certain, except death and taxes.'
You really need to look at how VAT works before you do it @Muhammad8585. If you register for VAT (which you can do via HMRC) you can then reclaim 20% back on VATable purchases. However everything you then sell needs to have 20% added on. You then pay the difference to HMRC each quarter.
I.e. you buy £5,000 worth of goods, and save £1,000 in VAT. Then if you sell that £5,000 for £10,000 you need to actually charge them £12,000 (£10k + £2k VAT). After that you give the difference to HMRC (i.e. £2k - £1k).
Unless you absolutely have to - dont. VAT registration is not at all about saving you money, as you seem to think, it is a way of raising revenue for the UK government. It is designed to cost you (i.e. the people you sell to) money.
Author
Thanks mark yh I thought about it but doesn't seem like what I thought about it so will have to scrap the idea
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sorted byThis thread is just dangerous.
I suggest you think this through and consider other avenues. Good luck
...if you're just planning 'toes in the water' then how about buying up bargains/glitches posted on HUKD and reselling? Even better, find those bargains yourself - buy during sales and promos, sell after those discounts die. (edited)
You are required by law to register as a business seller,
with VAT the buyer has to pay this when they purchase goods. if VAT registered you can reclaim the input VAT on purchases against the VAT charged on sales. you don't avoid paying the VAT in the first place on purchases
I.e. you buy £5,000 worth of goods, and save £1,000 in VAT. Then if you sell that £5,000 for £10,000 you need to actually charge them £12,000 (£10k + £2k VAT). After that you give the difference to HMRC (i.e. £2k - £1k).
Unless you absolutely have to - dont. VAT registration is not at all about saving you money, as you seem to think, it is a way of raising revenue for the UK government. It is designed to cost you (i.e. the people you sell to) money.