Deregistering for VAT

[greengal]

I am running a retail business and first registered for VAT last September. Now 10 months down the line, I am seriously considering deregistering as I have have not reached the turnover threshold of €75,000 and am not likely to do this in the coming months. I am finding that there are not many expenses that I can reclaim VAT on, whereas most of the products that I sell are liable for VAT, which is an unnecessary burden at this early stage.

I have read from a previous post, http://www.askaboutmoney.com/showthread.php?t=44918&highlight=deregistering+vat that it should not be too big a deal deregistering as long as I fill out the required form and have paid out more VAT that I have claimed back.

I am planning to continue trading as normal which will mean paying VAT up front to my suppliers, however not any longer charging my customers VAT when I make sales.

I am not sure on what the position is regarding goods that I will still have in stock when I deregister.

If anyone has any advise on this, I would be very grateful !

 

[Elphaba]

Just send a letter to your local tax office to deregister. Will not affect goods you have already paid for. If you go over 75 end of year, you will be clobbered. We are in a similar situation, but just over the threshold, struggling to pay vat. Aiming to stay under threshold however can have a negative effect on your bizness, so look at ways you can increase your turnover to 100k..

 

[greengal]

Thanks for your reply. I have downloaded for TRCN1 form from the www.revenue.ie website for de-registering. It is looking for a date of cessation and current value of assets so I guess I need to determine the value of stock remaining as at the date that I nominate for de-registering ?

My last return was for for period ending May/June 2008.