VAT and does it apply?

[DVazanias]

How legal is it, to set up a web site, give it a name and sell goods on it taking payments?

Do you have to register a company in some form to do this?

When it is starting at your taking practically no sales, is it needed?

And once you do, or of it is how does VAT apply. I mean for example, if i was to sell an item at auction on ebay, and state that vat will be added to the final amount.......am i allowed to do this when i am not a company?

Please let me know

[Statler]

Hi,

If you intend to trade as a sole trader, then the only organisation you need notify is the Inland Revenue - this must be done within three months of commencement of trading, otherwise you will face a penalty. You can find out more at:

http://www.inlandrevenue.gov.uk/startingup/pages.pdf

However, if you intend to set up a company, you must also notify Companies House:

http://www.companieshouse.gov.uk/infoAndGuide/companyRegistration.shtml

With regard to VAT, you only need to register for VAT when your turnover reaches 58K. You can find out more at:

http://www.hmce.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_Home

eBay also offer advice and information about VAT:

http://pages.ebay.co.uk/vat-landing/general/

You may also find it useful to read the following guide from Business Link:

http://www.businesslink.gov.uk/bdotg/action/detail?type=INT_PUBLICATION&itemId=1073793551&r.li=1074406959&r.pp=12&r.s=p&r.pt=startingabusiness

Lee