blipsblips
Registered User
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- 7
I have recently started up a second, smaller version of my existing business. I am registered as a sole trader for the orginal business, and I am an unlimited partner in the second. I am registered and pay VAT on my own business, and we are not VAT registered on the newer one. I would like to supply goods to the second business.
Long story short is, I buy in a product that is €30 vat exclusive. Can I then turn around and sell it to the second business at €27 vat inclusive, thus making a loss on the product? It probably seems bizarre, but the newer business will not hit the VAT threshold because it is only open on weekends and it really doesn't make sense to register it for VAT. Technically it just seems like bad business practices, but something inside me is questioning the legality of this sort of manoeuvre. Any advice will help. Thanks
Long story short is, I buy in a product that is €30 vat exclusive. Can I then turn around and sell it to the second business at €27 vat inclusive, thus making a loss on the product? It probably seems bizarre, but the newer business will not hit the VAT threshold because it is only open on weekends and it really doesn't make sense to register it for VAT. Technically it just seems like bad business practices, but something inside me is questioning the legality of this sort of manoeuvre. Any advice will help. Thanks