# If registered for VAT and then deregister are u liable to pay back all the VAT claime



## noel123ie (16 Oct 2008)

Hi there

Just a quick one re VAT 

If you are registered for VAT and then deregister are you liable to pay back all the VAT you claimed

My brother said you are but does not make sense to me

Thanks for reading and advice
Noel


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## dinjoecurry (16 Oct 2008)

*Re: Vat*

You would have to make a VAT return to reflect your situation and then pay or reclaim the balance


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## hhhhhhhhhh (16 Oct 2008)

*Re: Vat*



noel123ie said:


> Hi there
> 
> Just a quick one re VAT
> 
> ...



Yes you have to pay back amount claimed if it is less than you paid.
ie ( if your sales were less than your purchases/expenses)

How it makes sense:
1: You register for VAT
2: You buy expensive equiptment/stock and claim the VAT back
3: You deregister for VAT
4: Sell your product without charging VAT, more money for you


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## willalex (16 Oct 2008)

*Re: Vat*



noel123ie said:


> Hi there
> 
> Just a quick one re VAT
> 
> ...



It depends. Without going into the precise complexities of VAT rules, the normal rules are:

It you are obliged to register for VAT because your turnover exceeds or is likely to exceed the registration threshold limit, then you are entitled to claim back all VAT costs that directly relate to the business and account for VAT on all supplies.  If and when you cease trading there is no obligation to pay back any excess of VAT recovered.

However, if you elect to register (i.e. your turnover will not exceed the registration limit), which you might do to recover VAT on set up costs. then in this scenario there are rules relating to a clawback of VAT recovered in excess of output VAT.


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## Niall M (17 Oct 2008)

*Re: Vat*



willalex said:


> It depends. Without going into the precise complexities of VAT rules, the normal rules are:
> 
> It you are obliged to register for VAT because your turnover exceeds or is likely to exceed the registration threshold limit, then you are entitled to claim back all VAT costs that directly relate to the business and account for VAT on all supplies. I*f and when you cease trading there is no obligation to pay back any excess of VAT recovered.*
> 
> However, if you elect to register (i.e. your turnover will not exceed the registration limit), which you might do to recover VAT on set up costs. then in this scenario there are rules relating to a clawback of VAT recovered in excess of output VAT.


 
Yes there is, you are obliged to repay and excess vat reclaimed. Ie you cannot reclaim more vat than you have paid over the life of the registration.


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## Graham_07 (17 Oct 2008)

*Re: Vat*



Niall M said:


> Yes there is, you are obliged to repay and excess vat reclaimed. Ie you cannot reclaim more vat than you have paid over the life of the registration.


 
If one is obliged to register, say as a butcher through being over the limit, ones sales are largely at 0%. One has expenses at 21% and 13.5% which one is entitled to reclaim. If the business then ceases there is no obligation to repay excess VAT claimed. It is in situations of voluntary registration while under the limit that excess VAT reclaimed is liable to be repaid.

PS to the OP, could you make the title of the thread more specific than just "VAT"


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## willalex (21 Oct 2008)

*Re: Vat*



Niall M said:


> Yes there is, you are obliged to repay and excess vat reclaimed. Ie you cannot reclaim more vat than you have paid over the life of the registration.



Niall M,

Your comments are incorrect and my reply is backed up by subsequent poster !


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## keimhouse (21 Oct 2008)

*Re: Vat*



Graham_07 said:


> If one is obliged to register, say as a butcher through being over the limit, ones sales are largely at 0%. One has expenses at 21% and 13.5% which one is entitled to reclaim. If the business then ceases there is no obligation to repay excess VAT claimed. It is in situations of voluntary registration while under the limit that excess VAT reclaimed is liable to be repaid.
> 
> PS to the OP, could you make the title of the thread more specific than just "VAT"


 
i wonder if this is correct, i have just seen a property company having to repay large amounts of vat. they registered as they have been over the limits. interesting one with 0% sales, i will ask tax expert at work tomm this.


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## keimhouse (21 Oct 2008)

*Re: Vat*



willalex said:


> Niall M,
> 
> Your comments are incorrect and my reply is backed up by subsequent poster !


 
dont know if he is that incorrect!


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## Graham_07 (21 Oct 2008)

*Re: If registered for VAT and then deregister are u liable to pay back all the VAT cl*



Graham_07 said:


> If one is obliged to register, say as a butcher through being over the limit, ones sales are largely at 0%. One has expenses at 21% and 13.5% which one is entitled to reclaim. If the business then ceases there is no obligation to repay excess VAT claimed. It is in situations of voluntary registration while under the limit that excess VAT reclaimed is liable to be repaid.
> 
> PS to the OP, could you make the title of the thread more specific than just "VAT"


 


keimhouse said:


> i wonder if this is correct, i have just seen a property company having to repay large amounts of vat. they registered as they have been over the limits. interesting one with 0% sales, i will ask tax expert at work tomm this.


 
The illustration given re the butcher being registered while over the threshold would be correct. That does not mean it is the blueprint for all cases. VAT is probably the most complex and potentially dangerous of our taxes especially as regards immovable goods.


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## Beckie (21 Oct 2008)

*Re: If registered for VAT and then deregister are u liable to pay back all the VAT cl*

If you deregister for vat the look back period is 3 years.  In other words, you tot the returns (balances paid and refunded) for the last 3 years and if you have been refunded more than you have paid then the excess is repayable by you to Revenue.


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## Niall M (21 Oct 2008)

*Re: If registered for VAT and then deregister are u liable to pay back all the VAT cl*

Is it not over the lessser of the previous three years or the period of registration? something in my head about that.


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