Is it Legal? (drop-shipping)

Is it Legal? (drop-shipping)

Postby jashars on Wed Oct 19, 2011 8:11 pm

Hello friends, I was thinking about that is it legal that I do not have registered company, but I have made web-store where customers can pay to my credit card for product, after that I send this money to supplier in China and he sends goods to customer, then if it need customer pays tax and/or VAT in customs and gets his goods.(it called dropshipping). But I have question is it legal and do I need to register company and pay VAT for goverment? Also how to know if website is based in some country?- it shows on domain name like .com or .eu?
In my website is written company info in China(suppliers info).
jashars
 
Posts: 1
Joined: Wed Oct 19, 2011 8:00 pm

Re: Is it Legal? (drop-shipping)

Postby RMC on Sat Oct 29, 2011 7:22 am

It is perfectly OK to trade in the UK as a self-employed person, without forming a limited company. Assuming that you are in the UK, you should register with HM Revenue & Customs, and will be required to file tax returns and pay NIC.
Your accountant will want to see your sales documentation to verify this, but as your customers are responsible for VAT and import clearance, it would appear that your supplies are outside UK and you need not register for VAT. You could register, in due course, voluntarily, to claim input VAT on eligible expenses.
RMC
 
Posts: 27
Joined: Wed Aug 06, 2008 3:35 pm


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