You cannot exempt yourself from paying VAT

Pre August Amazon were invoicing from Luxembourg and a loophole meant you could be exempted from having VAT added. But this loophole has now been closed as since August Amazon are now invoicing from UK office.

Everyone pays VAT - individuals and businesses alike - its basically added to any goods or service you buy in. Take a look at any supplier invoice, utility bill, shipping etc.

Only a few items are exempted from having VAT added (for example children's clothes)

As a new seller you wont yet be liable to be VAT registered yourself. When your turnover reaches £90k you will have to register.

As a non VAT registered business you will have to pay any VAT added by the supplier of the goods or service

When you become VAT registered you still have to pay any VAT added, but then you can claim it back - and you must also charge it and add it to any goods you sell. You collect the VAT for HMRC and pay the difference between what you paid out and what you charged.

So (for simplicity I am ignoring fees) when not VAT registered if you bought in goods at £100. the supplier will add £20 VAT so you pay them £120. You sell the goods at £180 and have made £60 profit.

When VAT registered you still pay £120 to the supplier. Then on your VAT return (usually done every 3 months) you claim £20. But you must charge VAT. So if you kept your prices the same that £180 is now VAT inclusive so it is actually £150 for goods and £30 VAT collected. You then send HMRC £10 (the difference between what you collected (£30) and what you paid out (£20)) - and so now your profit is £180 (money taken) - £120 (original cost) - £10 (VAT sent to HMRC) = £50