VAT ???? help needed please??

Question

I sell gift baskets online & from home, I add the vat onto the total on my site, When i sell from home i make out invoices & receipts, but for example,,,,, someone buys my £10 basket, do I add the VAT or have to take it out of the £10. I think it would be abit of a hassle for my customers, they want to give £10 for a £10 basket????
please shed the light a little????

I am vat registered, but dont have to pay it? so do i still keep the VAT to the side,

Answer 1

1. Are you VAT registered??? If not STOP IT RIGHT NOW ITS ILLEGAL.

2. You add it to the sale price. I.e. if your baskets are £10 Net, then you sell them for £11.75 gross. If you are charging for shipping, yu do this:

£10 plus £5 shipping is £15 + VAT (£2.63) total invoice: £17.63.

You must quote your VAT registration number on any VAT invoice.

If you are retailing straight to the public, just sell the damned things for £10 and work out the VAT backwards or jsut advertise at £11.75. You don't see price tags in your high street with VAT missing from them do you now? Only in TRADE establishments not dealing directly with the public.

Answer 2

It sounds as if you are rather confused all round about VAT. Maybe you should get a leafet from your local tax office which explains all about the system and how it works. It is written in simple, easy-to-understand terms. You could be in serious financial trouble with the Revenue if you don't get this right. However, it may be that you don't need to register or charge VAT at all if your turnover is small.

Answer 3

Here is the easy answer to your question.......

When you sell on-line you are selling them for £10.oo plus VAT and are therefore taking £11.75 from the customer.

When you sell them from home you are selling them for £8.51 plus VAT and taking £10.oo from the customer.

Just concentrate on what you are TAKING from your customer and apply the VAT fraction of 7/47 to take out the VAT.

For instance if I give you £20.oo basket of flowers that would be £17.o2 plus VAT of £2.98.

£20.oo x7/47 = £2.98

Simple ?

I do wonder why you are considering VAT ? you should only consider VAT if you are a registered business or trader and your total sales exceed £60,ooo in a calendar year......

Hope that helps a bit.

Answer 4

You can do it either way i.e. the price of your basket can be £10+ vat i.e. £11.75 or it can be £10 all inclusive i.e. £8.51 plus vat = £10, but you must be consistent and obviously charging £10 inc vat will make you less profit.

Answer 5

I suggest that you undertake a Small Business Course this will aprise you on VAT & Income Tax and other similar queries.

The courses/seminars that I have attended, here in Dundee, were run by an initiative called BUSINESS GATEWAY, usually run under and in conjunction with the Chamber of Commerce. These courses are free of charge and are highly informative.

The courses are usually done in the evenings and last approx. 2 hours. There are no exams or tests, more like a discussion group and you will have the opportunity to network with others with similar circumstances to your own.

Look in - www.yell.com - for the nearest BUSINESS GATEWAY in your own locality. Or contact your nearest Chmaber of Commerce for directions.

Good Luck

Regards Biggles

Answer 6

if you want to only charge £10 for a basket then that what you should do therefore £1.49 of that £10 would be VAT and the basket would be £8.51

Answer 7

VAT short for value added tax is usually paid for by the
buyer but if you are making a lot of profit you can add
VAT inclusive. This will make your customers happier.

Answer 8

For a start off... are you VAT registered if not you cannot charge VAT. If you are then you add it on
eg goods cost £10
VAT @ 17.5% = £1.75
you charge £11.75 inc vat

Answer 9

when selling you should always state weather VAT will be added on post sale or if it included in the price.

The greater question is are you VAT registered.

If you are then you must state your VAT number if not then you can't charge VAT.

Hope this helps.

Answer 10

government does not care what or how you collect VAT, so long as you pay them the VAT!