Legislation on €37,000 VAT exclusion

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Khublei

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Pardon the vague thread title, wasn't sure how to put it.

Basically, I do some translation work. Last year I made about €200-300 but this year I might make upwards of €1000. I have the opportunity to get a contract but they need me to have a VAT number. I've sent all the forms away today but no idea how long that will take and in the meantime I won't get paid.

I'm a student so I definitely won't reach €37,000 this year, and I believe if I make less than this then I don't have to register for tax. The company say this will suffice if I can provide them with the section of our legislation that says I don't need to pay VAT if my income is less than €37,000.

So....would anyone know what that is and how I would find it?

Thanks
 
This is the page from the Revenue Commissioners website that advises the public in relation to the requirement to register for and pay Value Added Tax [VAT].

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Who must register for VAT?

A trader is generally required to register for VAT for making supplies of goods and/or services, subject to his or her turnover exceeding certain thresholds. The most common are €37,500 for the supply of services, and €75,000 for the supply of goods. Some traders are generally not required to register for VAT, although they may choose to do so. These include traders whose turnover does not exceed the thresholds above, and also farmers. Traders engaged in exempt activities are not permitted to charge VAT. However, they may, in common with farmers, Government Departments and other bodies be required to register for VAT, in order to account for VAT on services or goods received from suppliers outside Ireland.

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I don't know the specific legislation, but you could contact them.
 
Khublei said:
I'm a student so I definitely won't reach €37,000 this year, and I believe if I make less than this then I don't have to register for tax. The company say this will suffice if I can provide them with the section of our legislation that says I don't need to pay VAT if my income is less than €37,000.
Click to expand...

Just to clarify, you must register for tax (ie income tax) if you have self-employment income. The additional obligation to register for VAT only applies if your turnover is above the stated threshold.

The company or companies you work for have no right to dictate to you that you must register for VAT. If they have a query regarding VAT legislation, they can look it up as easily as you can.

Depending on the terms of your contract with them, they may on the other hand be obliged to treat you as an employee for tax purposes, if Revenue deem that your work for them is an 'employment'.
 
On a slightly different note, they may simply have assumed that you were making the required amount and many companies prefer to deal with suppliers of goods and services to lower their VAT liability for the period.

On another slightly different note, they may need this number - so they think - to process your invoices, when all they need is your tax number, which may be the same number when you are unregistered for VAT.
 
T McGibney said:
Just to clarify, you must register for tax (ie income tax) if you have self-employment income.
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Oh, I thought the VAT would cover that, as in, I'd be paying whatever percent on each job I do. How do I go about registering for tax? Sorry for the ignorance. I'm trying here but very clueless!
 
My Tax and VAT No. are the same, as I found out earlier thsi year when I de-registered for VAT.

If you've never paid tax before you're in a different situation and must register.


ONQ.
 
onq said:
My Tax and VAT No. are the same, as I found out earlier thsi year when I de-registered for VAT.

If you've never paid tax before you're in a different situation and must register.


ONQ.
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Well I have paid tax before but never been self-employed. Can anyone link me to a form I have to fill out and send away to have a tax number or is it more complicated than that?
 
Khublei said:
Well I have paid tax before but never been self-employed. Can anyone link me to a form I have to fill out and send away to have a tax number or is it more complicated than that?
Click to expand...

Form TR1 is the relevant form to register for Income tax / VAT etc...

However, I think you need to get your head around all of this stuff as you are signing up for a variety of legal obligations and consequences when you register...

In other words, get proper advice!!
 
+1 What mandelbrot has posted and the first person you need to contact is a competent and affordable accountant.

You put off doing your accounts art your peril, VAT or not.
 
Khublei said:
Pardon the vague thread title, wasn't sure how to put it.

Basically, I do some translation work. Last year I made about €200-300 but this year I might make upwards of €1000. I have the opportunity to get a contract but they need me to have a VAT number. I've sent all the forms away today but no idea how long that will take and in the meantime I won't get paid.

I'm a student so I definitely won't reach €37,000 this year, and I believe if I make less than this then I don't have to register for tax. The company say this will suffice if I can provide them with the section of our legislation that says I don't need to pay VAT if my income is less than €37,000.

So....would anyone know what that is and how I would find it?

Thanks
Click to expand...
The threshold is based on turnover, not income

If u have paid tax before u will have a tax number for personal income tax.

The paperwork takes about 6 to 8 weeks
 
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