I run a business based in the UK which imports outwith the EU and sells online via websites such as Ebay/Amazon etc.
The problem I have is that my turnover is on track to go over the current VAT threshold of £77,000 meaning I have to pay 20% on all my sales. I appreciate the golden rule is to then add VAT on top of your price but when operating online on these types of websites then you cannot simply add 20% on top of your prices as competition from other sellers dictates what price you sell at. Ultimately because I am importing fom outwith the EU it seems I will not be able to re-claim any VAT as it is not initially paid meaning the VAT will come purely ut of my profits with very little gain.
Is there a way around this or a way in which I can offset my VAT to limit the losses as this means I will either have to stay under the VAT threshold to avound the 20% charge which will affect my profits massively or I completely change my business and the products on offer.
Any help on VAT would be much appreciated,
Thanks in advance!
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Can I Recover My Losses I Will Make In Registering For Vat With My Uk Based Business?
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