Does non-EU turnover count in the VAT registration threshold?

Y

Yam_Naem

Registered User
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I provide freelance consulting services to various businesses, 100% of whom are located outside the EU. This year, my income has increased to the point where I'm now close to the VAT registration turnover threshold of €37,500. I've tried digging around online to see if there's a more granular definition of the VAT threshold but I can't find anything.

This leads me to conclude that I'll probably have to register for VAT even though I won't have to collect any VAT because the businesses are all non-EU ones, which doesn't seem to make much sense. So is the VAT turnover threshold independent of where your turnover comes from? Thanks for any help.
 
Yam, I am in a similar but different boat. I am 4 years self-employed and crossed the €37,500 threshold for the first time just 6 months into my current financial year (year to 31 July22) so, I am wondering is my whole turnover back to Aug21 now subject to Vat even though back last August I would not have known I would cross the €37k threshold?
 
I hope you're right with the term "generally"! I charge an vat inclusive fee so, in real terms that is an income reduction from when I crossed the threshold. I will have to revise pricing to deal with this service but first of all, I wanted to avoid a backdated vat liability.

Thanks.
 
The maximum backdating is to the beginning of the vat period. So 1st May, 1st July, 1st sept etc.

They won't be overly concerned with a small amount over the threshold before registering.

I'd be looking at registration from 1st July
 
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peemac said:
The maximum backdating is to the beginning of the vat period. So 1st May, 1st July, 1st sept etc.

They won't be overly concerned with a small amount over the threshold before registering.

I'd be looking at registration from 1st July
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I do 6-monthly vat returns so, backdate the vat liability to January then? January is actually quite close to when I crossed the threshold.
 
jfrank said:
I do 6-monthly vat returns so, backdate the vat liability to January then? January is actually quite close to when I crossed the threshold.
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When you apply to Revenue for the vat registration you actually specify a date that the registration starts. You can pick the date you passed the threshold and bill with Vat forward of that date.
The bi-annual return period will still need to be entered as starting from the 1st of Jan, their systems are really picky. My last vat registration required a few 0 vat returns to get up the point when the business started trading - there was a long delay in the application being processed.
 
Thanks Ryaner. I had already registered back 4 years ago and actually paid Net Vat for maybe the first 1 or 2 bi-annual returns. I eventually figured that I was not over the threshold and submitted NIL returns since. Now in my next bi-annual I will have a liability as I have definitely crossed the threshold so, I am going to take it that I have to return/pay vat for Jan - June this year..... I hope this is right?
 


If you've been registered for VAT for the past 4 years, you should have been accounting for and remitting VAT throughout that period regardless of whether or not your turnover exceeded the threshold at any given point.
 
T McGibney said:


If you've been registered for VAT for the past 4 years, you should have been accounting for and remitting VAT throughout that period regardless of whether or not your turnover exceeded the threshold at any given point.
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Oh dear
 
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