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    1. ekitten1 is offline

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      #1

      VAT registration number for buying wholesale - Registering with the HMRC

      Hi,

      I am completely new to this and finding there's some fantastic information on Wholesale Forum. Thank you to everyone posting this

      I have a question relating to ordering without a VAT registration number. Until I know whether my business will take off, I plan to trade as a sole trader, but many wholesalers require a VAT registration number. Is there a way around this or will I only be able to order from wholesalers who do not require one?

      Thank you in advance.

      eK
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    2. WholesaleMod's Avatar
      WholesaleMod is offline

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      #2
      Hi eK,

      Welcome to Wholesale Forum

      Indeed many wholesale suppliers ask for a VAT registration number as a means of verifying that they are dealing with a legitimate and serious buyer. Many wholesalers will still want your business even though you are not registered for UK VAT. You need to contact each wholesale supplier individually to find out if they will supply you without a VAT number. In the meanwhile you can use wholesalers who don't require a VAT registration number, then ask them to write you a reference to submit to the more demanding wholesalers.

      It is generally not advised to register for VAT until you have passed the threshold, however if not having a VAT number stands in the way of you setting up a successful business, we suggest considering registering for VAT with the HMRC. The main advantage is the ability to reclaim VAT on business purchases. Applying for a VAT number is free, you will then be required to file a tax return every three months and charge VAT to your customers (which is at this point in time 20% of your sale price, a large chunk for businesses that are just starting out and that have limited leverage to work on).

      Hope this helps
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    3. Lingerose's Avatar
      Lingerose is offline

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      #3
      As above, wholesalers ask for you VAT to verify if you are a real company. For wholesalers this is the easiest way to check in the European VAT numbers database called VIES.

      Another reason they ask for a VAT number is for invoice purpose. If you buy products from another country in EU if you have a valid VAT number you will be issued the invoice with no VAT. If you don't have VAT number you pay the VAT rate of the country where the wholesaler is located.

    4. parnell is offline

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      #4
      Has anyone had any success dealing with suppliers from "wholesaledeals" without being VAT registered? I want to become a member of wholesaledeals. The thing is that I am not VAT registered. Is it still relevant to me?

      Sorry for refloating such an old thread.

      Thanks for your help

    5. MissWholesale's Avatar
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      #5
      Hello Parnell,

      Welcome to Wholesale Forum,

      Please note that it is not a requirement to be VAT registered in order to trade with suppliers featured on Wholesale Deals. What is important is that you approach suppliers in a professional business-mind manner. Registering voluntarily for VAT can be a burden on the initial phase of your business and can jeopardise your chances of success. In many cases stricter suppliers will accept non VAT registered businesses if you can demonstrate you are serious about the business and have a clear measurable and actionable plan of action to succeed.

      Having said all this, registering voluntarily for VAT does send a message to suppliers that you are serious about your business and that you are a legitimate buyer (suppliers get scammed too...). Generally though for start ups it is not advised to register for VAT until you have passed the legal threshold, which currently is set to an annual turnover above £77.000.

      For more information on VAT registration, you can refer to the following past discussions.

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