The Wholesale Forums

[dan_bighit]

Hello,

Im a little confused.

Say if i was VAT registered can i claim back VAT a wholesaler charges, but then make money from charging the customer VAT.

For example i buy a MP3 player from a wholesaler for £32.22 exc VAT.
So with VAT will be £37.86.

I can the charge the customer say £39.99 for the mp3 player and make £2.13, and then claim back the VAT and make another £5.64.

Or am i wrong, can some one please explain

Thanks Dan

[greedyboy]

There are loads of topics on VAT here.

In simple terms, the VAT you add to your purchase price goes to the VAT man less the VAT you paid the wholesaler.

[hardwareheroes]

You can't profit from VAT. Well you can but they'll clap you in irons if they catch you

[geosamm]

in general terms you pay the vat man the difference between the vat you charge through your business..... and the vat you pay on behalf of your business [including fuel etc].... just like greedyboy said