Micro Bic for retail sales

[Racerbear02]

I am sure this has been asked before, but searches of the site just return nonsense replies, guess the search is not working properly again.

I am considering setting up a business to retail motorcycle products on line, working from home.

I will be the sole importer for these products and, initally at least, I will not be carrying stock just passing the orders on to the manufacturers in the UK for them to despatch.

I have heard that there are different types of Micro Bic for different purposes, and that earnings are limited, does this mean turnover, or actual profit is limited?

I would assume that I would have to have a French TVA number so that I can sell in France, but I have heard that Micro Bic have restrictions on TVA, for example that I could not sell outside France to a VAT registered company and not charge them VAT.

I would be very pleased to hear from anyone who has set up a similar sort of business, or from anyone who can point me in the direction of some definitive information regarding setting this up.

For a retail business such as this, will I need to go on any courses? I have run my own businesses in the UK for many years so have no problems with the concept of sales and business management, but maybe the French paperwork might be a killer.

Any help gratefully received

[Nick Trollope]

Ask an accountant! I don't know who has been advising you, but most of the above is ......

Micro's are meant to be simple. You are under no compulsion to register for TVA, but you can if you wish. Your turnover (total turnover, not just sales turnover) must be less than 76,000 (ish) Euro's (If you are TVA regd. this figure is nett of TVA).

Consider the TVA issue carefully. If you buy from the UK you will pay TVA at 17.5% and if you can't reclaim it, then your prices will appear slightly cheaper to your retail customers (who can't reclaim the TVA anyway); eg;

TVA reg - cost 10€ (effectively no TVA, because you pay it at 19.6% then promptly reclaim it @ 19.6%), sell 50% markup = 15€ + TVA (19.6%) = 17€94 contribution = 5€

-BUT-

Not TVA reg - cost = 10€ + VAT (@17.5% - 11€75) sell (@50% margin) =17€63 contribution = 5€88 - You ask yourself why we turn ourselves into unpaid tax collectors....

Register with the Chambre de Commerce & no you don't need to go on any courses. Use an accountant - he/she will save you money in the long run (and save all that paperwork).