One simple reason Gator, TAXES!!
I'm still looking into building our first 1TB unit but the TAXES are killing us. Everything that we need to build has VAT and not knowing how many units can be sold + ROI, its not as easy as 123. So far, its MUCH cheaper importing.
However, YES I'd love to be able to produce these here in the UK and are still researching.
We are only a small company and have been running for many years. Bitcoin I believe is going to explode and I'd like to be a part of that explosion when our UK stock starts filtering in.
As a VAT registered business you pay no VAT buying from other businesses in the UK/EU. You only add VAT once you sell it to a UK/EU customer. You can also offset depreciation of you stock against your VAT bill. You cannot escape VAT by importing goods anyway.
Gator, I have had endless conversations with our accountants and your suggestions are well known and discussed.
Simply put:
We are NOT VAT registered yet?
We will be VAT registered once we have decided if we are 'doing well' and its worth registering due to minimum threshold. We don't if the numbers are going to be good or not hence why I'm hesitating spending £63,000 on building here in the UK.
For now, Mining Hardware is registered in China and the UK office is a "collection point". All mail order imports are sent direct to our customer who will be responsible for import duty. UK retail collections will have a stock price + 20% tax.
Building these units in China is soooo much cheaper dude vs building it here, even with import tax. Like I said, I'm still investigating. I will be more inclined if the numbers are good. Still early days. I intend to kick ass
