VAT Charges new rules August 2024
Hi!
I am writing in regards the new vat rules from August 2024, I wanted to ask if someone from the forum knows if I am a seller that does not hit the threshold of £90,000 per year. I still need to be charged vat? can I register and claim back as a sole trader? or I will need to change the legal entity to register to vat?
Thanks in advance
3 replies
Seller_QuM1AZgzfU9x4
All sellers pay VAT on fees now. Only sellers registered for VAT can claim it back. A sole trader can choose to register for VAT if they wish before they reach the £90k, but they should be sure it is financially worth it first - since most sellers will need to collect VAT on their sales too.
Seller_ZVAz3d5lZuGid
Just to fully agree with above reply. ALL seller fees now have VAT applied, regardless of if you are at the threshold, or not. In the past you could declare yourself exempt from VAT, but that option has now gone. You can register for VAT voluntarily, but, as said, you would need to work out if it is a sensible decision financially. You can still be a sole-trader.
Seller_DggnMr4I0VREe
Hi,
No matter your threshold when you buy goods or a service from a VAT registered company you will have to pay VAT on them regardless if you are VAT registered or not. You can become VAT registered at any time however when you hit the 90k limit within any given month as most people think its April to April, it's not it within any given month you are required by UK law to be VAT registered and pay on your sales however you can claim back on your purchases if the company is also VAT registered. There is a thing where 2 VAT registered companies don't have to claim or charge VAT to one another however it is a bit of a faff and confusion and basically this is what Amazon has changed so really if you are not VAT registered then nothing should really change for you because Amazon should by law be charging you anyway if you are not VAT registered.
