VAT registration?

[checkmate]

Hi guys

I am doing a tender for a company that is after some desktops around 100. I was wondering i am not VAT registered. Would this cause issues with me getting this tender? will it be beneficial for me if i become VAT registered for this tender? or isit ok to carry on without VAT for now?

[SarahL2012]

Hi guys

I am doing a tender for a company that is after some desktops around 100. I was wondering i am not VAT registered. Would this cause issues with me getting this tender? will it be beneficial for me if i become VAT registered for this tender? or isit ok to carry on without VAT for now?

VAT registration is sometimes seen as a badge of a 'respectable' company - particularly if going for public sector contracts.

More importantly if you are buying 100 desktops then you will incur 20% VAT on these which is either going to make you more expensive than the competition (if you try to pass that on to your potential customer) or reduce your margin.

Is this type of tender a 1-off?

[TheFaQQer]

If you pass the VAT threshold, then you will have no choice.

If you need to buy 100 desktops, then you can either register for VAT and reclaim the 20% back, or you can pay the gross price and not claim the VAT back. Work out which is better for your business and then decide.

I would expect that the client would assume you are VAT registered - if you aren't, that suggests a small operation that they may choose to steer clear of.

[checkmate]

thanks for fast reply

Yep it will be one off as i usually provide services than product so was told i wont need VAT registration

[TheFaQQer]

thanks for fast reply

Yep it will be one off as i usually provide services than product so was told i wont need VAT registration

Whether you provide products or services is irrelevant - once you pass the threshold for VATable turnover (£79k), you must register.

[checkmate]

atpresent i am udner that threshold as well. sadly half that amount!! lol

[Scruff]

I would be very surprised if you succeeded with any tender if you aren't VAT registered since the cost to the customer will be 20% higher than from a VAT registered vendor, at an equivalent base price?

[checkmate]

I would be very surprised if you succeeded with any tender if you aren't VAT registered since the cost to the customer will be 20% higher than from a VAT registered vendor, at an equivalent base price?

guess ill need to set up asap then if i was to get that tender!

[Scruff]

I thinkv that in that case you would have missed the boat, since your tender will reflect the gross price including the VAT that you will pay if you aren't already registered? Normally the tender process will ask for your Company and it's VAT registration details as part of the initial tending process...

[lukemg]

Sure you have this covered but just be careful, chap I know started providing kit and one company went bust with his bill outstanding and nothing left in the pot.
I don't even think he had rights to the kit, which he couldn't store or get rid of anyway.
Was paying it off for years.....