paying vat?

Question

if you buy things from shops and sell it on (for eg newlook etc) do you need to pay VAT... because its had vat paid already.

Answer 1

WHAT IS VAT? WHERE ARE YOU FROM?
i dont think we have that in the U.S.

Answer 2

If you are continuously trading "as a business" there is a threshold when you must register for vat. That turnover figure was, last year, £56,000 (calculated at £14,000 in one period of three months).

If you are not trading above that figure then VAT registration is voluntary, but remember if you register you can reclaim the VAT on your vatable purchases, but will have to charge VAT on sales.

VAT is a tax which businesses collect on behalf of the Government, the only people who actually pay VAT are those that are not VAT registered ie Joe Public. Whether it is worth thinking about registering in your situation only you can decide. The warning is that it will increase your book keeping requirements.

Answer 3

erm only if you are vat registered and are a trading business

the way vat works is that the last person to buy the product actually pays the vat.

so if you bought a top for £20 which included vat of £2.98
your cost would actually be £17.02 as you could claim the £2.98 back from the vat man.

now if you sold it on for say £30 including vat of £4.47, your sale would actually be £25.53 and you would pay the vat man the £4.47

but what actually happens is that vat is paid over to the vat man on a quarterly basis, so you would only pay the difference between £4.47 minus £2.98 which is £1.49 and you actual profit is based on the net amounts which would be £25.53 minus £17.02 which is £8.51.

but be aware you do not have to be registered for VAT until you turn over (income) reaches or is expected to reach £64,000 for a year.

hope this makes sense

Answer 4

a million. you is only no longer waiting to can charge VAT until you formally sign up 2. you could desire to sign up for VAT as quickly as your bills teach a turnover of £64000. 3. you could VOLUNTARILY sign up even if your turnover. that's frequently powerful early on whilst your purchases of inventory a ways outweigh your earnings(turnover), as you could declare back VAT on purchases. you could backdate your claims on purchases in spite of the undeniable fact that, whether you do no longer sign up as we communicate. 4. VAT to inland gross sales is paid in the entire turnover by ability of dividing the comprehensive turnover by ability of 40 seven and then multiplying by ability of 7. this grants you the quantity of VAT you could desire to pay. 5. you could desire to upload VAT to the fee you desire to get carry of to your products at 17.5%. i.e. you want £one hundred for a gown so £one hundred + 17.5% = Sale fee of £117.50. 6. as quickly as you have registered there are quite a few techniques of the two paying and assessing your VAT criminal accountability, such because of fact the 'Flat fee scheme' for small companies, that's regularly powerful to companies with low entire purchases, the place the sale fee of the products especially incorporates the information or suggestion of the organization. eg. Hairdressers or in step with danger your fiancees organization if she have been making up the outfits from uncooked materials, and not determining to purchase the whole gown wholesale to resell at a earnings. 7. VAT would be extremely baffling. there are a number of greater factors to contemplate, yet i think the above is sufficient to be hectic approximately on the 2d.

Answer 5

Nope - you only pay Value Added Tax once.

Answer 6

no you dont have to.

Answer 7

no