Post by ferret on Dec 25, 2006 17:21:11 GMT
[quote author=starscreamsghost board=gen1 thread=1166447074 post=1166910671
ANY sale in the UK by a business is applicable to have VAT applied except very few things such as books and childrens clothes some items are lower value VAT (5%) e.g.birth control[/quote]
Hi Starscream's Ghost.
The current turnover limit for VAT registration is £61,000. If your turnover is under this amount you do not have to register for VAT and have no obligation to charge VAT on your sales although for a VAT registered business, toys are a Vatable supply. Books and childrens clothes, as you say, are exempt from VAT even if you are VAT registered.
Someone under the limit may voluntarily apply for VAT registration even though there is no legal requirment. The benefit of VAT registration is that you can reclaim the VAT on business purchases which non-VAT registered businesses can't do. The disadvantage is that it increases the price to the consumer as they can't reclaim VAT.
Forgetting accountancy, Bumblebee is a great toy!
Ferret
ANY sale in the UK by a business is applicable to have VAT applied except very few things such as books and childrens clothes some items are lower value VAT (5%) e.g.birth control[/quote]
Hi Starscream's Ghost.
The current turnover limit for VAT registration is £61,000. If your turnover is under this amount you do not have to register for VAT and have no obligation to charge VAT on your sales although for a VAT registered business, toys are a Vatable supply. Books and childrens clothes, as you say, are exempt from VAT even if you are VAT registered.
Someone under the limit may voluntarily apply for VAT registration even though there is no legal requirment. The benefit of VAT registration is that you can reclaim the VAT on business purchases which non-VAT registered businesses can't do. The disadvantage is that it increases the price to the consumer as they can't reclaim VAT.
Forgetting accountancy, Bumblebee is a great toy!
Ferret