DSF

Hi,

Can anyone tell me, when selling online, do you add 'sales tax'?

Thanks in advance

In the UK and EU we charge vat not sales tax [some software terms this sales tax].
Only add vat if you are registered for vat. ( check here to see if this applies to your business )
If you are based in other countries then local sales taxes will apply check with your local state tax office.

daviddeer;117482 wrote:In the UK and EU we charge vat not sales tax [some software terms this sales tax].
Only add vat if you are registered for vat. ( check here to see if this applies to your business )
If you are based in other countries then local sales taxes will apply check with your local state tax office.

Thanks for this David, this is a big help!

I have always wondered why some businesses add V.A.T on and others don't, this explains why nicely .

The Sales Tax you are referring to is known as VAT, which is either charged by businesses who have voluntarily applied for registration (Allowing them to offset the paid VAT towards expenses), or businesses that have reached the revenue limit required before they have to register for VAT (Can't remember the exact figure).

If you're doing this as an individual, you won't need to charge it

If "as an individual" your turnover exceeds the VAT threshold (presently £82,000) you'll need to register for VAT!

It's often beneficial to some to voluntarily register for VAT too.

Generally beneficial if one exports a good proportion of one's production, or else buys more than one sells.

Can't think of any other situations, though I'm sure that there are some...

Disadvantages are additional workload, and becoming uncompetitive relative to one's non-registered competition...

webtrekker;117707 wrote:It's often beneficial to some to voluntarily register for VAT too.

Not very often its not. If you are going to reach the turnover threshold where you have to register for VAT then unless you intend to grow your sales to well beyond the VAT threshold, then IMO stay under and maximise your returns on what you do. Ie sell £80,000 per year and nett as much as you can. If you arent prepared to grow sales then have a month off and stay under.

If you buy high value items and sell to other business it usually better to register for VAT, if you sell to joe public its best not to be vat registered.