VAT for Ebay Reseller

martyt3

Hi
I've just started reselling for customers on ebay. Currently it's split 2/3rds to the customer of selling price and the rest between myself and ebay fees.
I've been getting some big money camera items in for resale lately and am now realizing that it might not be long be long before I hit the £73000 VAT threshold.
What should I do?
I have very little to claim back on vat. If 20% vat has to be absorbed into the selling price that will kill my business model dead.
Is the only alternative to stay under the threshold?

Thanks
Martin

chancesare_2

If you think the Vat threshold is 73k then you need help from an accountant!

Lomast

Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £77,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT. However, if your turnover has gone over the registration threshold temporarily then you may be able to apply for exception from registration - see the section later in this guide for more information.

from http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm

so if this is likely to be a temporary situation then you MAY be able to get an exemption if not then you have to either a) Register or b) make sure you dont trade above the threshold.