Do I need to register for VAT?
Do I need to register for VAT?
Author
Discussion

kitfreak

Original Poster:

39 posts

244 months

Monday 14th August 2006
quotequote all
Hi all,
Ive been approached by a Dutch company who want to Import my products. They are advising me that they can only do so if I am VAT registered as they can then claim their VAT back if they have a VAT number.
The problem is I dont have a VAT number because I have yet to reached the threshold in turnover that requires me to register. Is there any way past this road block?

Plotloss

67,280 posts

293 months

Monday 14th August 2006
quotequote all
You can voluntary register for VAT even if your turnover is below the compulsory registration threshold.

dcw@pr

3,516 posts

266 months

Monday 14th August 2006
quotequote all
i'd havbe thought since you aren't charging vat, then they don't need to claim it back? Migh be different when dealing with other countries though.

kitfreak

Original Poster:

39 posts

244 months

Monday 14th August 2006
quotequote all
Id rather not register at the moment as I feel it gives me an advantage of a lower priced product.

Eric Mc

124,794 posts

288 months

Monday 14th August 2006
quotequote all
What VAT is the Dutch company planning on claiming?

If you were VAT registered in the UK, you would be able to Zero rate the sales you make to your Dutch customer. As they receive a Zero rated Sales invoice from you, they will not be charged any VAT in the first place so there is nothing for them to claim back,

If you remain non-VAT registered in the UK, you won't be charging VAT anyway.