Do I need to register for VAT?

[crobo]

Hi all,
I'm setting out as an IT contractor and need to buy the first laptop for my new business. How do I go about not paying the VAT? Do i need to register and if so how and with whom. I'm an absolute beginner here Any help would be greatly appreciated.

 

[Mark_Mc]

Hi,

In order to recover the VAT you need to be registered for VAT. You are not legally obliged to register and account for VAT until your turnover reaches a certain level.

There are certain implications for you if you register but your turnover wasn't high enough to place an obligation on you to do so.

If you have any more questions you can contact me through my homepage listed on my profile.

Regards

Mark

Hi all,
I'm setting out as an IT contractor and need to buy the first laptop for my new business. How do I go about not paying the VAT? Do i need to register and if so how and with whom. I'm an absolute beginner here Any help would be greatly appreciated.

 

[Andrew Duffy]

There are certain implications for you if you register but your turnover wasn't high enough to place an obligation on you to do so.

Can you expand on this, please?

 

[ubiquitous]

.

If you have any more questions you can contact me through my homepage listed on my profile.

Much better (and safer) in my opinion to ask questions publicly on these forums than correspond by pm or email.

 

[DB74]

1. Whether you can register for VAT or not will depend on what type of busines you do. Some businesses are VAT-exempt and you can't register even if you wanted to.

2. If you are in a business which is VATable, then if you are selling goods and your turnover for any 12 month period is expected to be at least €75K, then you are legally obliged to register for VAT

3. If you are providing a service and your turnover for any 12 month period is expected to be at least €37,500, then you are legally obliged to register for VAT.

4. You can opt to register for VAT if your turnover is expected to be bewlow the limits in points 2 or 3 above.

 

[bazermc]

Hi all,
How do I go about not paying the VAT?

Well you dont "not pay the VAT". If you are providing a service that is subject to VAT. you register for VAT and deduct your VAT on purchases from the VAT charged on you sales and pay the net figure over to Revenue by way of a bi-monthly VAT return. While there is turnover limit that once reached you have an obligation to register for VAT, however, there is nothing from stopping you from registering earlier.

It may be no harm if you engage an accountant to assist you -they can also do your accounts and tax going forward then leaving you to focus on your business

 

[The MOB]

Would it not be more prudent to speak with someone specifically qualified in tax law when it comes to a taxation matter? I mean is every accountant qualified in tax law?

The way I see it if I have legal problem I speak with a solicitor and if I have a tax problem I speak with a qualified tax advisor who has passed specific tax exams.

If he registers prior to his turnover reaching the amount that places a legal obligation on him to do so and he later de-registers is there any negative attached to the basis of registration that needs to be dealt with at the time of re-registration?

It may be no harm if you engage an accountant to assist you -they can also do your accounts and tax going forward then leaving you to focus on your business

 

[Graham_07]

Would it not be more prudent to speak with someone specifically qualified in tax law when it comes to a taxation matter? I mean is every accountant qualified in tax law?
The way I see it if I have legal problem I speak with a solicitor and if I have a tax problem I speak with a qualified tax advisor who has passed specific tax exams.

Every qualified accountant does, as part of their qualifying examinations, have to pass specific examinations in taxation , corporate/CGT/CAT/Personal etc. along with the regular subjects of accounting/auditing etc.

Every accountant in practice must also, to retain their practising certificate do a certain number of hours of CPD ( continuing professional development) per annum ( i have to do 96 hours over a 3 year cycle ) . Those CPD will include ones on taxation.

So while every accountant will not be a qualified tax consultant they will have broad taxation knowledge as required by their institute. That does not make them necessarily the best person to speak with but certainly better than pub counter experts.

If he registers prior to his turnover reaching the amount that places a legal obligation on him to do so and he later de-registers is there any negative attached to the basis of registration that needs to be dealt with at the time of re-registration?

If you register while under the threshold and get back net amounts of VAT, i.e. refunds exceeding payments, and then seek to de-register while still under the threshold, one must give back the net VAT refunded to Revenue.