Business Start up NOT VAT REGISTERED - Quoting

malc_b

antrobus wrote: »

What cash flow benefit? You can register for VAT and opt for the Cash Accounting scheme as long as your turnover is under £1.35m.

Probably worthwhile explaining that cash accounting means that the VAT on sales only becomes payable when you get paid. Normally it is when the invoice is issued which could be 4 months before you get paid depending on business, at least 2 months in the worst case (invoices summed up at end of month 1, paid end of month 2). VAT is then paid quarterly so cash accounting means you never have to pay VAT you have no received and typically you earn a bit of interest (not a lot these days).

heretolearn_2

Edis - To keep this simple

VAT registered businesses charge everyone vat. The status of the 'buying' business makes no difference to that whatsoever.

Non-VAT registered businesses are not allowed to charge anyone VAT. The status of the buying business makes no difference to that whatsoever.

OP - to keep this simple.
If your clients are VAT registered it makes no difference to the price they pay in the end if you are registered (and so charging them VAT) or not.
If your clients are not VAT registered it is cheaper for them if you are also not VAT registered (and so not charging them VAT).
Tenders and prices are always quoted £x +VAT in B2B situations. Only in retail selling to consumers and not businesses are you required to quote VAT inclusive prices.