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Small shop business selling second hand and some new vynal products. Below VAT threshold but considering volutary vat registration.
Most stock is obtained from private individuals either giving items for free or accepting an agreed amount for a job lot of items. A small amount of items are purchased from registered business who are vat registered and has vat value within their invoice.
Selling items are to private individuals only.
So if registered for volutary vat:
- I assume the vat element of new items described above can be claimed?
- But items received for free or purchased from private individuals cannot be claimed?
THEN when selling item to a private individual, my only customers:
- The item was purchased new and vat claimed, (e.g. purchase £18 + £2 vat = £20) and sell it for £25 to a private individual, does it need to be included on the vat return as a sale? I assume a profit of £7 (£5 markup + £2 reclaimed profit)
- The items obtained for free, or within a job lot from private individuals are then sold to private individuals are not included in a vat return?
I am wondering if there is any benefit in registering for volumtary vat, based on the above?
Most stock is obtained from private individuals either giving items for free or accepting an agreed amount for a job lot of items. A small amount of items are purchased from registered business who are vat registered and has vat value within their invoice.
Selling items are to private individuals only.
So if registered for volutary vat:
- I assume the vat element of new items described above can be claimed?
- But items received for free or purchased from private individuals cannot be claimed?
THEN when selling item to a private individual, my only customers:
- The item was purchased new and vat claimed, (e.g. purchase £18 + £2 vat = £20) and sell it for £25 to a private individual, does it need to be included on the vat return as a sale? I assume a profit of £7 (£5 markup + £2 reclaimed profit)
- The items obtained for free, or within a job lot from private individuals are then sold to private individuals are not included in a vat return?
I am wondering if there is any benefit in registering for volumtary vat, based on the above?