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Quick question for VAT numbers

by c0nner
4 replies
Hello guys, This is my second day on Warriorforum and I am loving it.

I'm trying to start up drop-shipping however I do not own a VAT number, I've read on HM Revenue & Customs that I do not NEED a VAT number unless I am making over £79,000 (HM Revenue & Customs: When to register for UK VAT link here)

And as I am 17 years old...trying to help out my family with bills and do not own a company I haven't got a VAT number. Is there any possible way I can go about skipping the VAT section on Drop-shipping websites?


Thank you in advance.
#numbers #question #quick #vat
  • Profile picture of the author spearce000
    VAT is assessed on your turnover. If you hit the target (or you look like you're going to hit the target) in the tax year, then you must register for, and start collecting VAT.


    As you're going to be drop-shipping it might be a good idea to register anyway, as you'll be able to reclaim the VAT on purchases.


    I've found this forum: UK Business Forums - the UK's most active help and advice forum for owners, managers and entrepreneurs of small businesses and startups. (not an affiliate link) to be very helpful when seeking advice for issues like this.
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    • Profile picture of the author c0nner
      Originally Posted by spearce000 View Post

      VAT is assessed on your turnover. If you hit the target (or you look like you're going to hit the target) in the tax year, then you must register for, and start collecting VAT.


      As you're going to be drop-shipping it might be a good idea to register anyway, as you'll be able to reclaim the VAT on purchases.


      I've found this forum: UK Business Forums - the UK's most active help and advice forum for owners, managers and entrepreneurs of small businesses and startups. (not an affiliate link) to be very helpful when seeking advice for issues like this.
      Thank you. So Is it not possible to open an account on a dropshipping site without a VAT number? As I'd like to test it out before purchasing stuff like VAT numbers...Company names etc.
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  • Profile picture of the author Richard Tunnah
    See an accountant. Many will do a free first consultation.
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    • Profile picture of the author wtatlas
      Have you actually tried skipping the VAT section? You might find it is not an obligatory section anyway on some of the dropshipping sites.

      A post above mentioned signing up for VAT as you can then reclaim VAT on purchases. This is true but if you decide to do that you also have to add VAT to anything you sell and keep VAT records and make returns. If you are just testing the waters you might be better to skip VAT registration until, hopefully, your turnover is over the limit and you have to register.
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