Can I buy wholesale without a Tax ID number?

Can I buy wholesale without a tax ID number?

How many times have you asked yourself if you need a Tax ID to buy wholesale fashion in the UK? With no surprise, all the businesses that intend to buy wholesale fashion do need to have a Tax ID number that legally needs to be provided when buying wholesale fashion online from a manufacturer or distributor, however this is not the same as being registered for VAT. There are certain regulations that must be strictly followed to trade legally -  first of all, you will need to register your business with the HMRC. Buying wholesale in the UK doesn’t have to be complicated though!

The first thing that you need to do if you are interested in buying wholesale as a business is to get a Tax ID number by registering your business with the HMRC. A Tax ID is required on your tax return and is also often used to make business purchases as well as set up business accounts with wholesalers and other businesses. For most individuals in the UK the TIN will be their National Insurance Number. More information about Tax ID numbers you can find here
Also if your business will overcome the minimum earnings threshold of £85,000 per year,  you will need to register for VAT, more information can be found on the HMRC official website. As long as your trading incomes are below £85,000 per year and are a registered business, you can relax and not worry about VAT registration. The main benefit of being VAT registered is of course that you can claim back any VAT made on wholesale purchases!

If your business earnings are clearly above £85,000 per year, you will have to register through VAT1 registration form, either online or by post. As a wholesale buyer with incomes above that threshold, you always pay VAT on wholesale. If the supplier is UK-based, you will have to pay your VAT with your order, then claim it from HMRC. On the other hand, if the supplier is EU-based, you don’t need to pay VAT together with your order. In that case, you will have to calculate the VAT due yourself and pay it on your next VAT return, claiming it back at the same time.

Now you need to think about where to buy wholesale fashion? There are plenty of online marketplaces such as TradeGala. All you need to do before doing so, is making sure that you buy and trade legally and according to the local laws. Since last year, TradeGala has been an official partner of the Department of International Trade, as it actively supports the platform's fashion brands in their expansion to the new, international markets. That online marketplace connects wholesale vendors and retail buyers from all over the world, thanks to a customized e-commerce platform.

So if you are considering getting into the wholesale market, please do not forget about these three milestones - register your Tax ID number, register for tax and of course register for VAT if your incomes are above the minimum earnings threshold of £85,000 per year. If you are still unsure how to deal with buying wholesale products, instead of contacting the HMRC, try to get in touch with a local accountant or tax office, who should be able to explain step-by-step what you need to do. It’s all to smoothly navigate your wholesale buying and reselling experience!

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