Question
For example:
I source the £10,000 worth of products for Company 'A' directly from the factory. Company 'A' pays me £10,000, I pay the factory and arrange the products to be delivered to Company 'A'.
I make my money by charging the company 2% more for the items than the factory prices them at.
Should I be charging the company VAT and Tax on the items ? or am I just providing a service?
Answer
As the name suggest VAT is tax on value addition and in your you will be liable for tax on 2% of value addition.
I.e you will pay tax on 10200 Euro and take input of tax on 10000 euro.
