Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Can you explain VAT to me please?

7 replies

pforpig · 15/12/2025 00:16

So if I bought some clothing samples and paid VAT, when it comes to reselling them do I have to charge the customer VAT as well?

OP posts:
Vickim03 · 15/12/2025 00:20

You can only charge vat if your vat registered. Hmrc have a lots of info on their website regarding all of this.

FenceBooksCycle · 15/12/2025 00:22

Almost certainly not.

If your business turnover from buying and selling exceeds £90,000 you have to register for VAT. Then, you have to charge your customers VAT on what you sell BUT you don't have to pay VAT on anything you buy for business purposes in order to make those sales. This is usually done by deducting the amount of VAT you paid from the amount you have to send to HMRC out of your takings.

Unless you are talking about some really large volumes of goods, you do not add VAT.

pforpig · 15/12/2025 00:23

I’ve just been on there and was confused. There are only a small amount of things that you cannot charge vat on. Ok so if you are below the threshold and don’t not register you do not need to charge VAT?
If instant a business selling clothes I pay VAT on those clothes but then I don’t need to charge the end consumer VAT? If do that is good because it felt like one item of clothing was getting charged VAT twice.

OP posts:
Ariela · 15/12/2025 00:24

Only if you are registered for VAT can you charge VAT (and claim it back on purchases and expenses for your business - which isn't compulsory until your total taxable turnover for the last 12 months goes over £90,000 (the VAT threshold), or you expect your taxable turnover to go over £90,000 in the next 30 days.
If you're paying VAT on a lot of expenses, it's worthwhile VAT registering because you claim back the VAT on the expenses to counter the VAT on sales.

Some items are zero rate VAT eg kids clothing, in which case it is advantageous to be VAT registered as soon as possible because you can claim back VAT on all your business expenses, but don't charge it on sales. Meaning more profit.
https://www.gov.uk/register-for-vat

TheRosesAreInBloom · 15/12/2025 00:24

As @Vickim03 says, you will pay VAT on many things in life but will only need to (and only should) charge VAT on a business sale, if you are VAT registered.

Are you running a business OP?

RedTagAlan · 15/12/2025 00:27

VAT. Or as builders and garage mechanics call it: Vague Additions to the Total.

It's a joke before I get piled onto :-)

TheRosesAreInBloom · 15/12/2025 00:28

pforpig · 15/12/2025 00:23

I’ve just been on there and was confused. There are only a small amount of things that you cannot charge vat on. Ok so if you are below the threshold and don’t not register you do not need to charge VAT?
If instant a business selling clothes I pay VAT on those clothes but then I don’t need to charge the end consumer VAT? If do that is good because it felt like one item of clothing was getting charged VAT twice.

That’s correct, if you’re not registered (therefore don’t have a VAT registration number which you would need to show), you don’t charge VAT on your sales - neither can you reclaim it on your qualifying purchases of course.

New posts on this thread. Refresh page