missthrifty
Registered User
- Messages
- 47
I am a sole trader with a small retail business. In 2011 I was de registered for VAT as my turnover was under threshold (E75K? - is this the limit?). A book-keeper told me I was entering the VAT on purchases incorrectly on the Big Red Book software package. Apparently, it should be entered at 0% for both resale and non resale purchases, so the full cost of the product is calculated correctly for resale.
Also Purchases from the UK into Ireland are charged at 20% UK VAT, should I calculate the VAT as 23% for purposes of resale or enter them at 0% also?
Why, if I am de-registered do I need to calculate the VAT? Could I not just keep the invoices as proof of VAT payment or does Revenue need to see what potential VAT I am paying on my accounts? Since 2011 I have entered the cash sales as 'Non applicable' under the VAT column, would not this apply to the purchases also?
I have read the ROS.ie online information pages but cannot seem to locate the answers to the above questions. Does anybody know the correct way of entering the data?
Advice welcome.
Also Purchases from the UK into Ireland are charged at 20% UK VAT, should I calculate the VAT as 23% for purposes of resale or enter them at 0% also?
Why, if I am de-registered do I need to calculate the VAT? Could I not just keep the invoices as proof of VAT payment or does Revenue need to see what potential VAT I am paying on my accounts? Since 2011 I have entered the cash sales as 'Non applicable' under the VAT column, would not this apply to the purchases also?
I have read the ROS.ie online information pages but cannot seem to locate the answers to the above questions. Does anybody know the correct way of entering the data?
Advice welcome.