Tax, who do I charge and when?

Question

Hello, I've just started up my first small business importing toys from China and selling to retail outlet stores. I'm just about to go out selling them and was wondering when does VAT tax come into the equation? I am vat registered and all of the products I have coming in are charged 0% VAT because they are toys, so when does the 17.5% VAT come into operation? Thankyou so very much.

Edit: I am UK, London based.

Answer 1

I don't think you needed to be registered, but check answers in the link

- "If you are in business, you must register for VAT if your turnover for the previous 12 months is above £67,000. This is known as the VAT registration threshold. It changes regularly, so you should regularly check your turnover against the current threshold."

Answer 2

Hi

VAT is chargeable at 17.5 per cent on most goods and services. This is the standard rate of VAT that is charged unless goods and services are listed under zero rate, reduced rate, exempt or outside the scope of UK VAT.

Childrens toys do not appear in the headline list of items that are subject to reduced or zero or exempt VAT http://www.hmrc.gov.uk/vat/rates-goods.h... so they would normally be standard (17.5%) rated on sale in the UK. Although you can confirm this by calling the Revenue on 0845 010 9000 from  8.00 am to 8.00 pm Monday to Friday.

Assuming they confirm that the sales would be standard rated, then you have to charge VAT on every sale you make.

Answer 3

If you only sell toys or other zero-rated goods, it won't.  As soon as you start selling things that attract VAT at either the standard rate or the reduced rate, you need to add the VAT in pricing them - but it still won't affect the toys, the sake of which will continue to be zero rated.