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supply query

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  • 25-04-2012 1:54pm
    #1
    playhouse12
    Registered Users Posts: 10 ✭


    Hi all,i have a few potential customers interested in a product,that i can source,from a supplier,goods have to be paid before released,the customers want to pay cash only,not interested in vat,im not vat reg yet,just starting out on this entreprise,but supplier says that the price they give me,will include vat,whats my best way forward on this
    say its a garden shed worth €500 plus vat,and i receive it for say €350 plus vat,but customer doesnt want to pay vat


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    #2
    R3al
    Closed Accounts Posts: 303 ✭✭R3al


    If your supplier is VAT registered they have to charge you VAT, if you do not want to register for VAT, then your only option is to make up the cost of the VAT in your resale price - you do not charge your customers VAT(as you are not VAT registered) but you need to make a profit on the item by charging enough to cover the vat that you paid


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    #3
    MOH
    Registered Users Posts: 6,465 ✭✭✭MOH


    Really comes down to whether most of your customers will be VAT registered on not.

    If so, you set your selling price, charge them VAT on top (which they'll claim back), and claim back the VAT you pay your supplier.

    If not, then you pay the VAT to your supplier, and set a higher selling price.


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