This article outlines Wolf & Badger's VAT obligations and how that impacts Non VAT registered brands (UK only).
Under the terms of our contract, Wolf & Badger is obligated to collect and remit VAT on all sales to UK customers. Unlike with VAT registered UK brands, we will not automatically add VAT to the amount billed from you to us through the self-billing arrangement so there will not be a VAT component to reclaim.
Therefore it is essential you notify us as soon as you are registered.
In preparation for scaling your business, we recommend allowing for the VAT amount when setting your retail prices across all channels, as certain platforms such as Wolf & Badger will be obligated to remit this portion to HMRC.
You should ensure that the price you set on Wolf & Badger matches your own website and other channels. If you are not yet VAT registered, you may benefit from 'keeping' the VAT on your own channel sales in the short-term, but this should be weighed against the benefits of registration.
Once registered for VAT in the UK, you will charge and be able to reclaim output VAT on UK sales, including those made to Wolf & Badger, so you may wish to consider voluntarily registering for VAT sooner rather than later.
In any case, you will be legally obligated to register when your business passes the turnover threshold (currently £85,000/annum).
NB: If you are not VAT registered, please make sure to leave the VAT field empty, for example do not include N/A.