Dropshipping VAT

jiminho

ok i'm thinkin of setting up a dropshipping account on ebay. i know what dropshipping is all about and i thought i might give it a try so i can earn a few extra bob.

now my qs is, whats the story with vat? do i need to get a vat number and if so is that hard and what do i need to do? i here loads of people saying you get your vat back from the governet bi-yearly, what are they saying....i buy an item for x euro and sell it for x+21% but it doesnt go to be but the government.

as you can tell im not a business student but would really appreciate, in detail, what i need to do to set up a ebay dropshipping business.

all answers will be greatly appreciated

thank you

cabla

Is dropshipping not a seller of a seller. Like you dont actually buy anything. They buy through you, you act as a middle man....So if you dont buy anything, maybe you dont need to register. Dont quote me on this, aint too sure.

surveys

jiminho wrote: »

ok i'm thinkin of setting up a dropshipping account on ebay. i know what dropshipping is all about and i thought i might give it a try so i can earn a few extra bob.

now my qs is, whats the story with vat? do i need to get a vat number and if so is that hard and what do i need to do? i here loads of people saying you get your vat back from the governet bi-yearly, what are they saying....i buy an item for x euro and sell it for x+21% but it doesnt go to be but the government.

as you can tell im not a business student but would really appreciate, in detail, what i need to do to set up a ebay dropshipping business.

all answers will be greatly appreciated

thank you

VAT is charged at the point of entry. i.e; If you get a seller in say (china) to drop ship an item to a buyer in the UK, then the buyer will be forced to pay VAT at the point of entry in the UK. Your not involved in this Vat process. Likewise, if the drop shipper sends the item to Ireland then the buyer again pays VAT at the point of entry, in this case Dublin. Again your not involved in this VAT. In both cases you will pay the shipper in China for the goods, again no VAT. If the goods originate in the UK, or anywhere else in the EU, the same principle applies. The only time you would charge VAT and remit to the Revenue is if you personally sold an item to someone in the EU and shipped it yourself. In any case you only need to register for VAT if your trading (turnover) volume in Euro's exceeds 51,000. p.a. !
Hope this helps. ?

chillywilly

surveys wrote: »

VAT is charged at the point of entry. i.e; If you get a seller in say (china) to drop ship an item to a buyer in the UK, then the buyer will be forced to pay VAT at the point of entry in the UK. Your not involved in this Vat process. Likewise, if the drop shipper sends the item to Ireland then the buyer again pays VAT at the point of entry, in this case Dublin. Again your not involved in this VAT. In both cases you will pay the shipper in China for the goods, again no VAT. If the goods originate in the UK, or anywhere else in the EU, the same principle applies. The only time you would charge VAT and remit to the Revenue is if you personally sold an item to someone in the EU and shipped it yourself. In any case you only need to register for VAT if your trading (turnover) volume in Euro's exceeds 51,000. p.a. !
Hope this helps. ?

is it not 35,000 p.a?

surveys

chillywilly wrote: »

is it not 35,000 p.a?

For Services 37,500, for supply of goods its actually changed now to 75,000. !
http://www.revenue.ie/en/tax/vat/registration/index.html

chillywilly

surveys wrote: »

For Services 37,500, for supply of goods its actually changed now to 75,000. !
http://www.revenue.ie/en/tax/vat/registration/index.html

handy to know!