Ebay shop VAT???

I have been selling bits of my own on ebay for some time, and am now looking at moving into drop - shipping (selling via ebay on behalf of wholesalers) this would be very small scale, certainley to start with.

What do I need to know about VAT and other taxes? At what point do you need to start paying them? do you need to VAT register an ebay shop? Should I charge VAT on top of the cost price I get from the whole-saler. I really am very confused!!!!!!!

Im in England by the way.

Whoa - another Rachel C..... spooky

You only need to register for VAT if your selling turnover (not profit) is over the VAT threshold, which I think is at 拢61k at the moment.

In the event that you DO go over that threshold, you'll have to pay HMRC 17.5% of your selling price on each item, so if your business is going to be near this mark, I'd suggest trying to stay under. But, you then can reclaim any VAT someone else charges you for your business stock/services.

If you're going to be over this threshhold, you need to ensure that once you've added wholesale price, VAT, Ebay fees, Paypal fees, PLUS any income or corporation tax for the taxman, that you still can sell at a level that makes you enough profit.

I've personally found nowhere that sells anything I want to dropship at a price that leaves me with a profit after all the costs, and I'm not at the VAT level yet.

Have a chat with a local accountant - many will give you your first meeting/first hour for free, so you can go and ask questions from a professional

All the best

http://stores.ebay.co.uk/Aksessorize

I have a small ebay business and I don't pay taxes....if I start to sell more I just use different accounts so they can't track me.

You need to register for VAT if your turnover is more than 拢64000 PA. Turnover is the total that is charged to your customers including P&P.

You do not need to VAT register your Ebay shop *if* your turnover is below the VAT threshold.

Best practice with VAT is to charge inclusive of VAT. You then work out the proportion that is VAT and the proportion that isn't.

If you are lucky enough to be doing well enough to need to register for VAT it must be on the total sale, including P&P.

When you send in a VAT return for the VAT you pay, you may subtract any VAT you paid to your supplier, and on your ebay fees. You don't pay VAT on VAT

you need to register as a buiness member first off.

you pay the vat on sales only not to the seller, they have a marked asking price say 1:99 you start the bidding at 1:99 everything else on top is profit, but remember you have to clear listing prices too,

you can either have the seller paid direct into their pay pal account or pay you and then transfair the funds across, but remember this pay pal charge for shifting cash around