Distance selling and vat

hairyslug · 25-06-2016 09:30PM #1

I'm starting up as a sole trader, it'll be small time, supplamentary kind of thing so turn over will likely be well below 35k

The majority of my sales will be to other eu countries to non vat registered customers. From what I've seen the lowest threshold is 35k to any of these. As long as I stay below the 35k turnover, do I need to register for vat. I'm in 2 minds already as having a vat no. would really help with some expenses whilst starting off.

Edit: I think it's time to talk to an accountant

DmanDmythDledge · 28-06-2016 12:08PM

The distance sales thresholds are for each individual country and not just overall to other countries so you should be under all the applicable thresholds.

In terms of opting registering for VAT yourself you would need to weigh up if charging VAT on your sales and increasing the price to your customers would reduce turnover sufficiently to wipe out the benefit you would gain from claiming back VAT paid on expenditure. And also there would be a time cost and probably a cost to an accountant for preparing and submitting VAT returns.

hairyslug · 28-06-2016 02:19PM

Cheers, a few more questions,

If my turnover over all hits 35k do I need to reg. for vat.

Also are there not benefits to vat, I will be able to reclaim the vat my stock purchases along with it equipment and stationary etc

Distance selling and vat

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