From: "Snowdon Computers" 
Newsgroups: uk.legal uk.finance
Subject: Re: Can VAT registration mean less profit?
Date: Mon, 14 Jul 2003 14:26:30 +0100

"Troy Steadman"  wrote in message
news:05f9eee1bd63321314f258d3d87ab0ba.125090@mygate.mailgate.org...
> "Doug Ramage"  wrote in message
> news:beu803$8gicp$1@ID-34015.news.uni-berlin.de
> >
> > But there may be "margin" scheme available?
> > --
> > Doug Ramage
>
> I must say I find it extraordinary that the OP has managed to achieve
> that level of turnover on E-bay, what an opportunity E-bay is offering
> to the entrepreneur!
>
> Hope he tells us what he is selling but I'd advise him not to.


I can beat that, my Ebay turnover last financial year was just shy of
£187,000 with a NET profit margin of 17.8%

FWIW, you don't necesarily lose 17.5% of the profit by going VAT regged as
you can claim VAT back on various other business related expenses such as
shipping, packing materials, vehicle costs etc etc etc. In my experience
becoming VAT registered has in the long run generated more profit as it
means that businesses are happier to bid on my items as they can claim the
VAT back on the things I sell on Ebay. (But then I consider the closing
auction price to be VAT inclusive while a lot of other sellers tend to add
the VAT on after the close of the auction to try and avoid paying Ebay
commission on the VAT element - allegedly)

--
Best Regards
Niel Humphreys
Snowdon Computers