Accounting for Flat Rate VAT on Current Stock/ Products.

[MattsCar]

Hi all, firstly, i do have an accountant, but they are not "open" over the weekend so thought I'd ask a quick question on here, to see if anyone might be able to answer.

I have been sticking under the VAT threshold with my online business, which is basically selling products online.

If i were to join VAT on the flat rate scheme (which is beneficial in my situation, due to the profit margins on the goods i sell and relative lack of stuff to claim VAT back on) what would happen to stock/products on hand that I hold, purchased outside of being VAT registered.

From what I have read, I assume that providing i don't claim any input tax when i join the scheme, I would just pay the flat rate on it while in the scheme.

Also, If i were to leave the scheme, say a couple of years down the line, am i right in assuming that any goods on hand, purchased while in the scheme would not be liable to any VAT charges when i leave, as no input tax was claimed.

Thanks in advance.

Matt.

[qska]

Sounds broadly right but you'll probably need to educate your accountant on it!
Mine screwed it up twice beffore getting it right

[MattsCar]

Thanks for your reply.

To be fair my accountant knows all the ins and outs even with the fine points of ecommerce. Will update the thread once I have spoken them to clarify.