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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7216
Experience:  FCCA FCMA CGMA ACIS
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My partner and I are a start up business and we are

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Hi.
JA: Hello. How can I help?
Customer: My partner and I are a start up business and we are providing a sports venue with a platform to sell goods and services through an online shop, making us a B2B2C business . Items available are sportswear, player sponsorship, donations, coach tickets etc. The supporters club who purchased the clothing are not VAT Registered. Neither are we as we have not earned a penny with our venture yet! We will one day be taking commission from sales, but for now, as this is our first customer, we are not charging them anything as we are using them as a trial venue. What is the VAT situation here? Do we have to charge or show VAT for on line purchases? Even for Donations, supporters club subscriptions and player sponsorship, which is a kind of donation anyway? Please advise . Thanks.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: No, thx

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

You can forget about VAT until you breach the Turnover Threshold, currently 85K, in any 12 month period. Above that registration is mandatory.

Customer: replied 8 days ago.
Great, so we don't have to show or charge VAT at present, splendid news :) Thanks

Correct!

 

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