VAT related confusion.
Tried to explore couple blogs related to it but couldn’t get my concept clear, so posting here in search of sincere answer and suggestions,
I am not a VAT registered yet, I paid 20% vat to my supplier and I am being charged 20% vat on every amazon service.
26£ is product price (including vat) and amazon charges in total are 11£ including vat.
So total cost is 37£ and my selling price is 40£.
So this 3£ is my profit? Or I still have to pay something to government?