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extreme_it

How To Sell With VAT and Keep Competitive Prices???

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extreme_it    10
extreme_it

Hi...

I was wondering if all the big sellers here on bidorbuy charge VAT on their sales, because as far as I know, you will need to be vat registered business if you are doing a certain annual turnover.

In case these sellers are vat registered, how can they still have competitive prices with smaller sellers who need not be vat registered?

Or maybe the prices of their items is excluding vat, and they will charge the buyer vat upon the sale of an item???

It is very confusing to me as I want to start charging VAT but I feel that my prices will then be much higher than competitors.

Thank you for any answers.

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svw    10
svw

If you are VAT registered your prices should be better and more competitive because even though you charge VAT you are claiming VAT back on all your stock purchases. The only drawback could be when you purchase stock from a supplier who is not VAT registered yet you still have to charge your customer VAT - in a case like that I always insist that my suppliers give a substantial wholesale discount otherwise it's not worth me buying from them...

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moodTime    10
moodTime

You are only required to register for VAT if your sales figures exceeds or is expected to exceed R1 mil during the year of assessment.

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svw    10
svw
You are only required to register for VAT if your sales figures exceeds or is expected to exceed R1 mil during the year of assessment.

 

I was made to understand that a vendor may voluntarily register for VAT on the payments basis if annual turnover exceeds between R 20 000 and R 300 000 - thereafter you are legally required to register - this excludes companies and cc's which have to submit VAT returns on the invoice basis.

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extreme_it    10
extreme_it
If you are VAT registered your prices should be better and more competitive because even though you charge VAT you are claiming VAT back on all your stock purchases. The only drawback could be when you purchase stock from a supplier who is not VAT registered yet you still have to charge your customer VAT - in a case like that I always insist that my suppliers give a substantial wholesale discount otherwise it's not worth me buying from them...

 

Thanks for the reply

 

How can my item be cheaper? I'm charging the buyer the normal price (which the competiters charge) plus the VAT amount?

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svw    10
svw
Thanks for the reply

 

How can my item be cheaper? I'm charging the buyer the normal price (which the competiters charge) plus the VAT amount?[/quote

 

To remain competitive I would still price my item a little cheaper than my competitors because the advantage a non VAT seller has is marginal because they cannot claim the VAT back on their expenses...

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