Reply To: Total novice here with a question about vat

[Trevor S]

You would complete VAT returns periodically (normally quarterly, although some smaller businesses can apply for annual).  VAT amounts (in either direction) must be included on the VAT return covering the tax point of the transaction – this is usually the date of supply of the goods.  So if your purchase and resale took place in the same return period, both amounts would be included on the same return, and you would just pay the difference to HMRC.