Financing, tax rates, and accounting
I am going to try and keep this very simple.
I am a new small business working with printful. I am based in the UK and Printful are preparing my orders typically in Spain and Latvia. My potential customers could be coming from anywhere but my last couple of orders are shipping to the UK.
Printful are charging me VAT on my orders that are eating in to the profits I set out in my pricing.
I am not registered for VAT currently being a small business with a handful of orders.
I know there is a Taxes section to set taxes and I know how to use this. However my question is this?
If I am to charge taxes how do I know what percentages to set for every country?
If I am not VAT registered should I even be charging taxes? Is this legal?
I do not want to put off potential buyers by seeing the extra costs (taxes) at checkout?
I could also simply up my retail price to cover taxes but again is this legal? I like my retail prices as they are and do not really want to do this. I typically sell products between £18.99 - £24.99 currently.
I am sure many others have had this problem.
What did you do in order to overcome VAT charges from Printful eating in to your profits?
Hey, I see that there are no comments, did you manage to find answers? I also deal with this problem, and I will be very happy if you will answer. By the way, how do you package your products? I really pay attention to every detail while I pack my orders. I also stamp the packages with my own stamp, which I made in just some minutes on https://mystampready.com. Even my customers appreciate my package, which makes me very proud of myself. However, I want to extend my business, this is why I will be very grateful for your answer.
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