flat vat scheme

[eddy130_1]

hi does anyone use the Flat Rate Scheme offered by gov.uk?

i looked but as i`m a fairly large buyer of goods to sell on eBay.  i`m not sure if it`s worth it. i am presently paying 20%.  at 1st gance it appears you only pay 7.5% but it seems you can`t ofset any VAT, in effect it`s a 7.5% bill on your goods.

any clarify from any other sellers would be helpful, thank you and a merry xmas sales,

stuart 

[61stephenuk · Accepted solution]

With Flat Rate scheme you are correct that it's a fixed 7.5% on most retail goods,you cannot reclaim VAT on your purchases.

You can always contact the VAT Helpline if you have any questions about the Flat Rate Scheme

[papso22]

Why don't you redo the figures for a couple of your earlier returns and see what the difference would be? 

The basics are that you collect VAT at 20% but declare output tax calculated at whatever the appropriate FRS rate is, but the 'downside' is that you can't recover any of the VAT you incur on your purchases, subject to some specific exceptions.