Registering to pay extra VAT

H

hughesy

Guest
Hi
I am finding it hard to find out further information with regards my concern.
I am currently working on a full time basis and paying PAYE/PRSI, however I have recently completed further studies in a completely different field. I am now fully qualified in this 2nd field also.
My question is as follows:
I want to be able to work professionally at my 2nd job (Part time Basis - some evenings and weekends) but I am also working full time in my main job.
With regards submitting bills/invoices of my part time job - how do I deal with VAT. Do I need to contact the revenue and get a VAT number. I am not a sole trader or contractors so do not currently look after my own tax no. I am confused as I am already paying PAYE/PRSI
All suggestions accepted
Thanks
John
 
You need specific professional advice from an accountant or accredited tax advisor. Its impossible to give you any meaningful guidance here in relation to VAT as you haven't even told us what sector you are in or your expectations for the business.
 
Thanks for the update

I am currently in the private section and current position is in software development. Salary > 40k

The additional qualification is in Sports physio and would involve working for myself on a client by client basis. Payment would be per session. My hope would be to see approx 6 - 10 clients a week (all going well)

When a client is paying should I be issuing them with my fee + VAT.. if so I would need a VAT number .. So a vicious circle.
 
Who must register for VAT?
You must register for VAT if you are a taxable person and your annual turnover (i.e. the amount of your receipts excluding VAT) exceeds or is likely to exceed the following annual limits

  • €55,000 in respect of the supply of goods
  • €27,500 in respect of the supply of services
You may also be obliged to register for VAT if you receive taxable services from abroad or if you are a foreign trader doing business in the State.

If you are involved in buying or selling goods within the EU you will need more detailed information and should refer to the comprehensive Guide to Value Added Tax which is available from any tax office.

www.revenue.ie
 
ubiquitous said:
You will need to find out in the first instance whether physio services are VATable.
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Physiotherapy is VAT exempt so no VAT implications. You will need to file a form 11 (Tax return) annually detailing your profit from this source (Gross fees less all related business expenses) along with your salary and any other relevant claims for tax credits (Health expenses, bin charges, trade union subs). You will receive a notice of assessment from revenue detailing tax and prsi due on your physiotherapy income which will be 47% of your net profit (42% tax, 3% prsi & 2% health levy). You also need to notify Tax Office when you commence using this simple form.

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Yeah sounds like an exempt service so therefore no VAT obligations. For some people that would be a good thing, however, it also means you will not be in a position to recover any VAT charged.
 
Thanks for all the updates.

At least I know more in relation to where I stand.
 
bazermc said:
Yeah sounds like an exempt service so therefore no VAT obligations. For some people that would be a good thing, however, it also means you will not be in a position to recover any VAT charged.
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Are you sure? If the OP registers for VAT can't s/he still claim back VAT paid for supplies and other business related expenses, irrespective of whether s/he has to charge VAT on sales?
 
extopia said:
Are you sure? If the OP registers for VAT can't s/he still claim back VAT paid for supplies and other business related expenses, irrespective of whether s/he has to charge VAT on sales?
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Exempt means you cannot register for VAT and therefore cannot claim back any input credits. Zero rated allows you to register for VAT and claim input credits without charging any VAT on sales. That's the difference between the two
 
extopia said:
But is there an obligation to apply for "exempt" status?
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Nope no obligation, but you may have to register in certain circumstances. Namely where you receive 4th schedule services from outside Ireland. Such services include professional services.

In this situation you will need to self account for VAT i.e. charge yourself VAT and pay over the amount to Revenue, and of course not be able to claim an input credit as you will be carrying on an exempt activity. This is called reverse charging
 
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