Claiming back VAT on imported goods for resale in UK

Hi. I work in construction - sole trader not VAT registered-yet as turnover is around £40,000. I'm looking for an additional income by selling tools and solar energy equipment online. When importing goods from China I pay 20% VAT to customs. Can I get voluntarily registered to VAT and then reclaim the VAT I paid to customs? I'm not going to charge my customers the VAT.

Hi Yes you can voluntarily register for VAT. Import VAT is indeed reclaimable by VAT registered businesses if the goods are for use in your business including resale. If you are VAT registered you will also have to charge VAT on the sales.

Hi,

If you import goods from overseas and you are the importer of record then the goods will be yours when they enter the UK. If you then sell these goods to your customers then you will be making a taxable supply.

As you are making taxable supplies both as a bulider and an importer then you can register for VAT voluntarily and then have an entitlement to recover the VAT as input tax.

Please see the guidance below:

Introduction to input tax

Working out whether you need to register

As you are a sole trader then all of your supplies will then come under this VAT number and you will need to charge VAT on your construction supplies as well as the sale of goods which you have imported.

Thank you.