VAT & Shops

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Sevren
Sevren Registered Posts: 101 Dedicated contributor 🦉
in VAT
Hi - I don't usually have anything to do with shops or anything involving cash if I can help it but after a recent discussion - it has occurred to me that I haven't really got an understanding of what happens in a shop when turnover reaches VAT threshold from a practical point of view. On the basis that all items are VATable presumeably this has a major impact on their pricing - although I appreciate that there are input vat considerations too.

Any comments from experience would be appreciated !

Many thanks.

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  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I would suggest it has no impact on pricing - or at least it shouldn't if they have priced their goods correctly.

    A new shop can 'make hay while the sun shines' until their turnover hits the VAT threshold at which point the net VAT payments to HMRC will come out of their bottom line.

    If they were supplying businesses rather than consumers then that is a different matter.
  • Sevren
    Sevren Registered Posts: 101 Dedicated contributor 🦉
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    Many thanks Dean - yes - I had this mental block this morning that it would have a bigger impact on shops than the businesses that I tend to work in - presumeably the only major upset is getting the till to account for VAT.

    Thank you - much appreciated.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    The till system probably is the biggest issue. With the right system the VAT is straightforward, without it it can quickly turn into a nightmare!
  • pinksponk
    pinksponk Registered Posts: 57 Regular contributor ⭐
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    HI Sevren

    Send me a PM. I deal with shops and cash all the time

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