I’m not an accountant or lawyer, but I think it goes like this:
- Are you VAT registered, if not you can’t claim back the VAT, and you can’t charge VAT, but assume you will sell at cost (you bought merch at price inc. VAT presumably?).
- All income is income, so you will need to register any profits in your tax return (personal or company depending on where you are booking the enterprise).
I have all kinds of little bits of income (and costs!!) from my two sites and they all go through my entity in the tax return.