If you are a dropshipper using a Chinese supplier, e.g. AliExpress, then most likely these sales will be considered out of scope for VAT. Have a read of our VAT for Dropshippers post for a more detailed treatment.
For this to be beneficial to your business, the VAT you pay needs to exceed the cost of filing VAT returns. If you are predominantly using Facebook for advertising, you are not paying VAT on this cost as Facebook uses the reverse charge mechanism (i.e. it does not charge businesses VAT, regardless of VAT registration). You can use our Instant Quote to get an idea of the cost of handling your VAT returns and VAT registration; if this exceeds what you might reclaim, then you should not register.
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If you're after a bit of advice and not ready to commit to an accountant, you can book a consultation call with us.
Ahead of the call you can fill in a questionnaire to grab the basic details about your business so we can spend our time discussing higher value points. We can cover a range of topics including:
The call is 15 minutes.
Not strict. If we have a couple minutes of chit-chat about recent global pandemics, we'll add this on at the end. We leave a 15 minute buffer after calls to accommodate this.
If you come onboard as a client your fee is credited back to your account.
What is the cost?
The consultation call is £50, including VAT.
What if I just want to ask about your services?
In this case, please get in touch by submitting a message on the Instant Quote form.
You've read our FAQs, blog posts, testimonials, understand the costs and are satisfied that we know our accounting for ecommerce. Then go ahead an click below to sign up.