Desktop Computer Packages

If i buy something from a wholesalers and they charge VAT do i need to charge VAT on top when i resell it?

So i buy a computer part at £100 they add VAT at 15% making it 115 then when i resell it in my shop do i need to ad VAT again ?

Public Comments

1. If you sell it at a profit, yes you will need to add VAT on to it. If you are VAT registered, you will be able to claim back the original £15 VAT that the wholesaler charged you. So if you are working on say 25% profit, you will then charge £125 for the computer plus the VAT of £18.75 making a total of £143.75 and you will pass on this VAT to the Vat collector. If you are not VAT registered, no you cannot add VAT onto the item but you can sell it on at £115.
2. If you are VAT registered then you can claim back the VAT you paid the wholesaler and add VAT to the amount you charge your customer. If you are not VAT registered then you can't claim back the VAT you paid the wholesaler and you can not add VAT to the amount you charge your customer, but there is nothing stopping you selling it for more than £115.