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One of the disadvantages that might be included is that:
“Loss of business from non – registered customers if prices increase by output tax.”
My doubt here is what exactly is the loss that business is going to suffer?
What it means is that if you become VAT registered your prices increase (20% in the UK). Therefore, if your customer is not registered and so cannot recover the VAT, you are less competitive compared to a business that is not VAT registered.
If you are less competitive, you stand to lose business.
Thank you so much for the reply.
Could u also help me with different VAT schemes please… actually I found this one on Bpp and got quite confused….
Annual accounting scheme and Flat rate scheme…. I wanna knw what are the roles of these schemes plus when exactly are the returns paid on each
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