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Is There Any Way To Avoid Paying VAT On eBay When Dropshipping Via Amazon?

Discussion in 'Ebay' started by Kieranight, May 4, 2016.

  1. Kieranight

    Kieranight Junior Member

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    Hi guys,

    I've been dropshipping on eBay via Amazon for quite a while now, and made a fair bit of money. I've been selling so much that this month I've had to register for VAT. This means I've had to increase my prices by 20% and subsequently I'm now only making about 10% of the sales that I was before.

    I've looked into it and there doesn't seem to be any legal way to avoid VAT, but if anyone could please give me some advice on how to get around it then I would be so grateful.

    Cheers for reading this,
    Kieran
     
  2. howardmarks

    howardmarks Newbie

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    It depends. Are your purchases for resale business to business?
    What I mean are you (newly registered for vat) purchasing from a vat registered company? I know u said amazon but that doesn't mean all your supplies are from Amazon themselves. Are you acquiring goods from outside your home country I.e. UK based and say German amazon supplied? Tax can be complicated.
    Vat is a consumer tax. The end user is charged and pays it. If u buy goods for resale as a vat regd business you can usually reclaim vat u have incurred on your purchases.
    Shoot me a pm if u need to
     
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    Last edited: May 4, 2016