Not sure I agree with you there.
If you buy something at £100 + VAT and sell it for £150 the calculations are:
VAT REGISTERED: The item cost you £100
NOT VAT REGISTERED: The item cost you £117.50
If VAT registered, when you sell the item for £150 inc VAT to a non VAT Registered buyer you make 127.65 - 100 = £27.65
If you are not VAT registered, when you sell the item for £150 to a non VAT Registered buyer you make 150 - 117.50 = £32.50. So you can actually make £4.85 more which is more money or you can lower your price to be more competitive with VAT registered sellers.
Last edited by greedyboy; 15-05-2007 at 09:31 PM..