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Expert Lu
Expert Lu, Business Consultant
Category: Tax
Satisfied Customers: 237
Experience:  ACCA Diploma
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I do dropshipping to the Uk I have never collected VAT, you

Customer Question

Hello, I do dropshipping to the Uk I have never collected VAT
JA: Have you talked to a tax professional about this?
Customer: you mean a tax attorney ?
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: i use Shopify platform
Submitted: 20 days ago.
Category: Tax
Expert:  Expert Lu replied 20 days ago.

Hello

I am an expert  with Just Answer and I am happy to assist  you with your question.

I am currently  reviewing  your question  and I will get back to you.

Thank you in advance

Customer: replied 20 days ago.
Hello, I do dropshipping from China to the UK, I never collected VAT and I don’t have a UK VAT number.
My company is based in EU.
My margins are low and I have no way to cover VAT cost, what can I do ? Declare bankruptcy?
Expert:  Expert Lu replied 20 days ago.

Hello, thank you for the additional  information,  I am still reviewing  your question  and I will get back  to you soon.

Expert:  Expert Lu replied 20 days ago.

If you are dropshipping and your customer is the importer on record then technically the customer is responsible for the import VAT. If your business is the importer on record then your business will be liable to pay the import duties and VAT.  If you are the one responsible you are suppose  to include  Vat in your charges the Vat charged is what you need to declare .

I am sorry about the issue of your finances .You need to report to the tax authorities  about your position.

All the best , please kindly feel free to ask if you  need me to clarify  my answer.

Expert Lu

Customer: replied 19 days ago.
Hello
I was trading under my name as a sole trader and made less then 85k£ in sales
Then created a company and made 130k£ in sales
Should I pay VAT for 200k£?
Expert:  Expert Lu replied 19 days ago.

Hello , if you made  more than £85000 you need to register for Vat as it above the threshold.

Thank you in advance

Expert Lu

Customer: replied 17 days ago.
This is not helping at all, I asked you a simple question
Expert:  Expert Lu replied 17 days ago.

Hello  very sorry for that , when you created the company and anticipated sales of above the 85000 did you register for Vat ? Vat would be due on sales that when you hit the threshold , you cannot declare bankruptcy as you owe HMRC if you did not make a VAT return.
I hope that I have Clarified your answer.