Staying under the VAT thresholds...

[brian.mobile]

Just wondering if there is any logic to staying under the VAT thresholds, in some cases?

Does anyone do this?

I believe it 70 K for goods and 35 K for services (?)

Above these thresholds applicable rates apply.

In some cases (importing) there may be very little VAT to 'claim back' against payments to Revenue.

BM

 

[ButtermilkJa]

It makes no difference to be honest. If you're not registered now then you won't be charging it now, so it will just be a case of adding it on to your invoices and paying the VAT man when it comes in. You won't lose anything. In fact, you'll gain, even if it is very little that you pay out, you'll be able to claim it back.

Where it might effect you is if you deal directly with customers. They will have to absorb the VAT in your price increase. If it's b2b then nobody pays any attention to VAT anyway so I'd worry more about trying to raise your turnover rather than keeping it below the radar so to apeak.

 

[Guest118]

I was asking my friend regarding my situation, hes an accountant for Revenue and I wanted to sell things online to mainly people in the states but because I am not selling to Irish people I cannot claim any VAT back even if I am registered. That aint very fair at all.

 

[hhhhhhhhhh]

I was asking my friend regarding my situation, hes an accountant for Revenue and I wanted to sell things online to mainly people in the states but because I am not selling to Irish people I cannot claim any VAT back even if I am registered. That aint very fair at all.

Its very fair.

You have a product A:

SELLING IT IN IRELAND:

You buy A for € 121 and reclaim € 21 VAT
You sell A for € 242 and pay €42 VAT
Profit = € 100

SELLING IT IN THE STATES:

You buy A for € 121 no VAT back.
You sell A for € 242 and pay no VAT
Profit = € 121

 

[setemupjoe]

In certin situations i think your better off keeping under the threashold ,i know a girl who runs a small tea room in an office block ,she was wondering the same as you,as her raw material is mostly v.a.t exempt fruit,veg.bread,meat,milk,coffee,etc she stood to lose if she went over the threashold,as she would have had to charge v.a.t on hot sandwiches,coffees and hot food take out ,paninis ,breakfast rolls etc.at 13.5 % as her business is small it would have hit her for a good lot of vat with no v.a.t on invoices to claim back. depends on your situation !