Flat vs Standard Rate Vat
I have only been selling on Amazon for a few months now with €4000 in sales. My business is registered in the Uk but I am based in Ireland. Since I don’t have a physical address over there I am termed an NETB (Non Established Taxable Person) This means I have to registered for Vat.
My question is: which is more suitable when selling on Amazon; Flat rate 7.5% vs Standard Rate.
Considerations: Flat rate margins are 5-20% vs Standard rate profit margins 20-40% (same products) Plus I can claim back standard rate on expenses and Amazon fees.
Flat rate: Is more profitable plus its easier accountancy wise. However, profit margins are far better on Standard rate so profit seem higher on standard rate.
Any input would be great guys
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