Pros And Cons Of Vat

S

shadowrun

Guest
can any one please let me know the pros and cons of vat for a sole trader
 
Your question is too broad for a meaningful answer. VAT is such a huge area it affects different businesses in different ways. If you were more specific perhaps then someone could give you an answer.
 
shadowrun said:
can any one please let me know the pros and cons of vat for a sole trader
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The main advantage is that you can reclaim the VAT you pay on goods and services purchased from your suppliers (provided they are business related).

The downside is you have to charge VAT on your sales. This is not a problem if your customers are other VAT registered businesses, but could be a problem if your customers are ordinary consumers and your competitors are not charging VAT.

The other downside is the paperwork and record-keeping. However, if you're running your business properly the extra work should be minimal.
 
I am planning on setting up as a Sole-trader for an online business.
I have been asked to supply a VAT registered company with my goods, however, I was not planning to register for VAT - I was going to include the price of my goods incl VAT in the price I was recharging.

WIll this cause the company a problem if I am to supply to them?
I had hoped to charge them a fixed price (no VAT) and they could recharge their customers onwards.

What is the best way to invoice them? How long will it take for me to get a Business No. when I register as a Sole Trader?

Thanks,
BC
 
Babycakes said:
WIll this cause the company a problem if I am to supply to them?
I had hoped to charge them a fixed price (no VAT) and they could recharge their customers onwards. What is the best way to invoice them?
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Ignoring all the issues regarding VAT thresholds for registration etc. If you are not registered for VAT then the customer cannot reclaim VAT. You may be charging on as part of your price the VAT which was charged to you but without a VAT registration you cannot give them a VAT invoice and they cannot claim the VAT. If you are not registered for VAT you invoice them your price with no mention anywhere of VAT.

Babycakes said:
How long will it take for me to get a Business No. when I register as a Sole Trader?
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If you mean a Tax number on filing TR1 with Revenue it can take a few weeks depending on how busy they are. If you mean a Registration of Business Name number on filing RBN1 with the CRO then if on paper, again a few weeks, if online should be faster about a week or so.
 
Thanks Graham & can I commence my supply of goods without getting confirmation of a business no (TR1)- have registered the name but not
as a Sole Trader yet but the opportunity has arisen and if I turn it down now it may not come along again so soon....

BC
 
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