Finding it hard to compete with Non VAT registered sellers

InsideInsurance

berbastrike wrote: »

thanks, I use Royal Mail post.

Most Royal Mail Post is exempt from VAT and so you probably are trying to claim VAT on something for which you havent paid any VAT. See http://www.royalmail.com/information-vat-and-postal-services to see which services do and dont attract VAT

This is one of the reasons why an accountant is useful.

System

InsideInsurance wrote: »

Most Royal Mail Post is exempt from VAT and so you probably are trying to claim VAT on something for which you havent paid any VAT. See http://www.royalmail.com/information-vat-and-postal-services to see which services do and dont attract VAT

This is one of the reasons why an accountant is useful.

The service I use, there is VAT added, 100%, no doubt.

InsideInsurance

Out of curiosity, what service are you using then given that 1st class, 2nd class, special delivery, recorded delivery etc are all exempt

System

Tracked 48

YoungBusinessman

Sorry to go off topic but this is whats putting me off going self employed, i would have to charge VAT ( the way i am going this year, anyway!! )

Why would a customer choose a service from company A with VAT rather than person B with no Vat and more than likely a casher so save 30-50% of the amount!!

System

YoungBusinessman wrote: »

Sorry to go off topic but this is whats putting me off going self employed, i would have to charge VAT ( the way i am going this year, anyway!! )

Why would a customer choose a service from company A with VAT rather than person B with no Vat and more than likely a casher so save 30-50% of the amount!!

30-50%? VAT is only 20% as you know I assume, I don't understand why you said 30-50%?

If the customer themself was VAT registered, then they would probably deal with company A (Vat registered) as it would mean they could claim the VAT that has been charged back.

Although if company A's prices are 20% more expensive then it would not make a difference.

Company A (VAT registered) price including VAT £120.

Company B (non Vat registered) price £100.


Company A could claim back VAT on the materials etc so could offer a price of around £110 including VAT, it all depends really. What is your trade?

motorguy

InsideInsurance wrote: »

Most Royal Mail Post is exempt from VAT and so you probably are trying to claim VAT on something for which you havent paid any VAT. See http://www.royalmail.com/information-vat-and-postal-services to see which services do and dont attract VAT

This is one of the reasons why an accountant is useful.

Whilst you may use a VAT exempt postal method, providing postage is seen as offering a service, therefore you have to charge VAT on that service.

InsideInsurance

motorguy wrote: »

Whilst you may use a VAT exempt postal method, providing postage is seen as offering a service, therefore you have to charge VAT on that service.

Yes, but he said he recovered VAT from his postage costs.

InsideInsurance

berbastrike wrote: »

Tracked 48

Are you meaning you are using Parcel Force? In which case VAT is there.

System

InsideInsurance wrote: »

Are you meaning you are using Parcel Force? In which case VAT is there.

NO lol, Royal Mail Tracked 48, no offence InsideInsurance but I should know my postage and costs better than you!!