Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
There is no requirement to register for VAT until the company's turnover exceeds 83K in any one year. Below that VAT can be ignored although it will have to be paid on products bought in or imported as the company is effectively the end user. Importation is always a problem as sometimes Customs will impose VAT and sometimes not, it is up to that Department. The products supplied by the company are standard rated so if the turnover threshold is breached then VAT will apply, registration necessary and full VAT accounting operated. Below the threshold there is no requirement to consult HMRC on VAT at all
I do hope that you have found my reply of assistance.
As you are already registered you must operate VAT on your sales and can reclaim all input tax paid on your quarterly return. All the big boys in this area of trade are charging VAT on sales of these standard rated products. It is possible that the other company is below the threshold, but you say it is registered. I would be inclined to ask HMRC why you have to pay VAT and the other company has not. That should put the cat amongst the pigeons, but not for you!
As far as I can see manicure powders are also a standard rated item.
Delighted to have been of assistance.
Thank you for your support.