VAT help needed – uk shop online?
November 10th, 2010
Hi,
If i have an on line business do i have to be VAT registered? The shop will be open for around 1 month, i will see how it goes as i am a college student and decide whether this is my future, i am aiming i will make around £2000 in total selling electronic goods such as DVD players and Digital Boxes.
Also, if i listed items with a description and then told them in the terms and conditions that these are vouchers for the products (full value of course),is this within the law or classed as false advertising?
cheers,
There are plenty of web sites (including HMRC) that publish details of VAT regulations for the small businesses = do your own research …
If you advertise an item such as ‘DVD Player’ with the explanation of the ‘voucher’ in the small print, many (if not most) buyers will still expect a package to arrive containing a DVD player.
If they get an envelope with a Voucher inside, you will get a lot of complaints (at best you get ‘negative feedback’ and demands for refunds – at worse you get closed down by the Fraud Squad
)
I suggest you put ‘voucher’ method in the ‘delivery’ notes, eg "DELIVERY. We send you a Voucher for the product to be collected from your local (Dixons ??) store" (or whatever). Remember – many people shop on-line because they don’t want (or can’t) go down their local High Street shops – so making a trip to the shops part of the deal will cut the number of potential buyers ..
Note also, due to the massive amount of on-line FRAUD (and things like photocopied Vouchers) you can expect few buyers and LOW PRICES (if you are going to sell via eBay, then unless you already have an account with hundreds of positive feedback, you can expect 90% of potential buyers will assume you are just another wannabee con-merchant ..)