Always paying VAT

[ptdirecor]

Hi,

I recently registered my Ltd company for VAT and have used it to claim back some VAT on purchases made.

What i would like to know is do I always have to charge the VAT. My business will still stay below the threshold. I got the VAT number so I could avoid the vat when making purchases. Can i charge the VAT on some sales and not on others?

Forgive me if this has been answered already.

ptdirector

 

[Graham_07]

if you have registered for VAT while under the threshold then
(a) you are entitled to reclaim VAT on inputs and
(b) you are obliged to charge whatever VAT rate is appropriate to your outputs/sales.

You cannot selectively decide to claim VAT on the purchases and not then pay VAT on the sales.

If you registered while under the threshold solely to claim VAT on the purchases then you may have made a bad decision, especially if your customers are largely non-VAT registered persons.

Additionally, if you seek to de-register while again still under the limit and have reclaimed more than you have paid in VAT then you cannot de-register without repaying the excess you got to Revenue.

 

[samanthajane]

Yes you do have to charge VAT on all your sales ( that apply ) or services that you carry out.

I'm self employed and i dont pay VAT because i'm under the limit, for myself it worked out much easier not to have to bother will the whole VAT side of things.

It would be ideal if we could re-claim the VAT we have spent and not have to charge it, but that is never going to happen!!

 

[Graham_07]

It would be ideal if we could re-claim the VAT we have spent and not have to charge it, but that is never going to happen!!

Revenue have a lovely phrase for this. It's called.....wait for it.... "unjust enrichment". Nice one isn't it.