Another VAT Question!

M

Majella17

Guest
I’m starting a business with my partner in September (a partnership). We are already registered for tax but not for VAT. We will be renting out tables to people to sell their hand crafted items. Similar to a craft market. We are going to rent a premises that will have an art gallery as well as a glass studio for myself.



My question is where does VAT fit into this as I do want to register. Do I charge a service VAT on the cost of the tables I rent out and they are individual's are responsible for their own taxes? or do I have to add vat to each piece? :confused: I wont be taking any cut of their sales the only thing I take is the cost per week for the table. I understand that VAT will need to be added to anything I make and sell anyway as I make glass items

Any help would be great

Majella:)
 
Do you mind me asking: why do you want to register for VAT?

VAT is a tax and as such it represents a significant burden on any trader within its scope. I would consider that those who are outside its scope are fortunate.
 
Because based on my numbers if it's a service charge I'd be providing I'd go over the limit. Also it helps with my fit-out costs and the cost of glass and all the tools and machines that come with it
 
If you add VAT and you supply the tables to a company, they will be able to reclaim the VAT.

Individuals can't reclaim VAT but you still have to charge it.

Good luck with the business :)
 
Hebs said:
If you add VAT and you supply the tables to a company, they will be able to reclaim the VAT.

Individuals can't reclaim VAT but you still have to charge it.

Good luck with the business :)
Click to expand...

Whether a business is a company or a sole trader is irrelevant in the context of VAT
 
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