I am supplying a small retailer with my products to sell. Please can someone advise how to get around the following situation:

When I import, I will get the goods directly sent to me. This is because if I get sent directly to the retailer, the documentation from the supplier will be on the side of the package, and the retailer will go directly to the supplier.

Because the delivery is coming to me, so will the VAT invoice, and as I am not VAT registered, I cannot claim this back. I will pay this, and therefore the VAT has been paid. But then the problem arises that the VAT on the products has been paid for, and therefore doesn't need to be paid for by the retailers customers.

How can I get around this?

Possiblities I have thought of are as follows but I don't know is they are technically legal:

1) When I produce an invoice, put VAT as an added element, which they can claim back. (But I am unsure of how to state this in invoices as I am not VAT registered (is it just as normal?)).

2) The retailer doesn't charge for VAT, but again is this legal?

3) Any other suggestions?!


Thanks.

you cannot reclaim the VAT, nor can you charge VAT as you are not VAT registered.

If the retailer is VAT registered they will have to charge VAT to the customer.

There is no way around this.

IF you are not VAT registered then you are not allowed to charge VAT to your customer. The VAT that you have paid at import has no relevance to whether you charge your customer vat or not.

So simply you just invoice your customer as normal but don't charge vat.

Originally Posted by djc.scotland

I am supplying a small retailer with my products to sell. Please can someone advise how to get around the following situation:

When I import, I will get the goods directly sent to me. This is because if I get sent directly to the retailer, the documentation from the supplier will be on the side of the package, and the retailer will go directly to the supplier.

Because the delivery is coming to me, so will the VAT invoice, and as I am not VAT registered, I cannot claim this back. I will pay this, and therefore the VAT has been paid. But then the problem arises that the VAT on the products has been paid for, and therefore doesn't need to be paid for by the retailers customers.

How can I get around this?

Possiblities I have thought of are as follows but I don't know is they are technically legal:

1) When I produce an invoice, put VAT as an added element, which they can claim back. (But I am unsure of how to state this in invoices as I am not VAT registered (is it just as normal?)).

2) The retailer doesn't charge for VAT, but again is this legal?

3) Any other suggestions?!


Thanks.

You Cannot charge VAT as you are not registered.

So its very simple the price you sell to the retailer is his buying price, he then adds his markup to it and sells it on to his customers. If he is VAT registered then as part of his final price he will need to charge VAT.

Cheers
Andy

If your not VAT registered - ignore VAT. Simple

__________________
Cheap Cosmetics === Wholesale Cosmetics

Cheers everyone.

Thread can be closed.

You are not registered for VAT so therefore you can not charge or Re-Claim VAT. The Retailer on the other hand if he is VAT registered and selling to the end user will have to charge VAT.

AS far as you are concerned VAT you have been charged is your cost of sales and therefore when you sell to the retailer your mark up should include the whole cost.