RE: FN-FORUM: I have a client who....

date posted 17th May 2006 22:13

> Is he allowed to do that?? Is it not the same as selling direct to
> the public ??

Sound to me more like a variation of drop shipping but in this case with =
the
supplier running the systems rather than the middleman, would doubt that
there is a legal impediment to it it=92s not like he is going to have =
lots of
customers turning up at his door.

One thing that could be an issue however is VAT

I would think that since he would be providing a service to the =
middlemen in
this case he would be obligated to account for VAT somewhat differently =
to
normal, not 100% sure but I guess that it would work something like

Item costs him =A350 + Vat, middleman charges customer =A375 + vat for =
item but
because he is taking the money and not the middleman it would need to
accounted for as

He charges customer =A375+VAT and remits to middleman after receipt of =
invoice
=A325+ VAT leaving himself with =A350 profit still and both input and =
output
vat. This would not be a good deal I suspect if he was on the flat rate
scheme.

Anyway figures may be out and I may be talking total crap since it=92s =
getting
late.