Re: Im newly registered to VAT and need to understand im charging correctly. If i get item from the plumbing merchants for £120 inc vat, do i charge 20% on top of this again?
Im newly registered to VAT and need to understand im charging correctly. If i get item from the plumbing merchants for £120 inc vat, do i charge 20% on top of this again?
EG... Not VAT registered, I would charge the customer £120 + £100 labour = £220. VAT registered,Part is £100 plus Vat = £120. I have to pay the merchant £120. This i would charge the customer. Do i add a further 20% for VAT again? EG £120 (parts) + £100 Labour + VAT = £266 Or is it £100 + £100 Labour + VAT = £240?
Im newly registered to VAT and need to understand im charging correctly. If i get item from the plumbing merchants for £120 inc vat, do i charge 20% on top of this again?
I guess this is up to you - would you expect to make a profit on the part or do you want to just cover the cost?
Now you're VAT registered the part is costing you £100 (you reclaim the £20 back on your VAT return) so, if you charge the customer £120 plus 20%, you'll be making a £20 profit.
Im newly registered to VAT and need to understand im charging correctly. If i get item from the plumbing merchants for £120 inc vat, do i charge 20% on top of this again?
I guess this is up to you - would you expect to make a profit on the part or do you want to just cover the cost?
Now you're VAT registered the part is costing you £100 (you reclaim the £20 back on your VAT return) so, if you charge the customer £120 plus 20%, you'll be making a £20 profit.
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