Hi,
So I have been playing around with this Ebay Amazon droppshiping malarkey, in fact using Zennoposter I have managed to automate the whole bloody thing from getting products, listing products to automatically repricing and completing sales. All i do is deal with the odd return and answer occasional question. Sounds great right? Time to scale up you might say....
Well how? At best I make 10% profit on each item sold, I average more like 8-9% but lets call it 10 for simplicity. In the UK you have to VAT register at £82,000 turnover which at 10% is 8k a year profit. Not exactly a living wage. SO i figure that's ok. With paying VAT and reclaiming VAT i should still be able to make money Ill just have to about double the volume of sales....
However having looked into it, no one bloody selling items on Amazon or even Amazon them selves charge VAT so it can not be reclaimed which pretty much busts the whole idea.
Am I wrong?
And also, if I was to switch to operating an account in the US it would of course be out of UK VAT scope but what US Tax implications would there be and would the USA want to/ be able to tax me as resident in the UK but virtually operating an ebay account in the US?
Thanks in advance.
So I have been playing around with this Ebay Amazon droppshiping malarkey, in fact using Zennoposter I have managed to automate the whole bloody thing from getting products, listing products to automatically repricing and completing sales. All i do is deal with the odd return and answer occasional question. Sounds great right? Time to scale up you might say....
Well how? At best I make 10% profit on each item sold, I average more like 8-9% but lets call it 10 for simplicity. In the UK you have to VAT register at £82,000 turnover which at 10% is 8k a year profit. Not exactly a living wage. SO i figure that's ok. With paying VAT and reclaiming VAT i should still be able to make money Ill just have to about double the volume of sales....
However having looked into it, no one bloody selling items on Amazon or even Amazon them selves charge VAT so it can not be reclaimed which pretty much busts the whole idea.
Am I wrong?
And also, if I was to switch to operating an account in the US it would of course be out of UK VAT scope but what US Tax implications would there be and would the USA want to/ be able to tax me as resident in the UK but virtually operating an ebay account in the US?
Thanks in advance.
