Reply To: Total novice here with a question about vat

[Imclandestino]

Thanks, this has been really helpful.

If you don’t mind could I ask one more question!

We are looking to offer a membership which includes discount on products. 
This works out fine for most products, however on a couple of items the discount we get from the supplier is lower. E.g.

£30 RRP 
£23.40 cost to us Inc vat

£19.50 cost to us net

£3.90 vat

£22.50 sale price to our customers

£3.75 vat 
£18.75 net 

This would obviously mean a loss of 0.75p

Now due to vat only being paid on profit. Would items like this be taxed differently?
E.g.

£19.50 cost

£22.50 sale price

£3 gross margin
0.50 vat 

£2.50 profit

 

Thanks in advance