RTD Vat code question

MichelleSinead

New Member
Messages
8
Not sure if this is where I should post so apologies if incorrect.

I am preparing the Return of Traders Details form for Revenue and I have two types of transactions which I am not sure where they go.

1 - sole trader in Ireland supplying me with a service, they are not vat registered as they are under the threshold (or so they say). I am guessing goes under Tax Code T2 which states "Exempt sales and purchase of goods for resale". In this case the service is being resold as the sole trader does the work, I get their invoice and I pass it onto the customer through my sole trader "business". I checked with Revenue to see if it goes here or under T0 which is "Zero rated sales and purchase of goods for resale."
I would assume exempt from is more appropriate than zero rated but Revenue couldn't answer and asked me to submit an enquiry by email / post and they'd get back to me.

2 - Company insurance. No vat paid, is this exempt or is it zero rated? I would assume zero rated but again they couldn't answer me. I spoke to 3 different people in the RTD department and none of them could give me an answer.

Anyone here that can point me in the right direction?
 

Ciru75

Frequent Poster
Messages
76
Insurance is exempt anyway.

I'd expect the purchase from the unregistered supplier to be classed as exempt too, a non-VAT registered business can't make zero rated (or any other VAT rate) supplies.
 

RedOnion

Frequent Poster
Messages
3,296
In this case the service is being resold as the sole trader does the work, I get their invoice and I pass it onto the customer through my sole trader "business".
You're creating a headache for yourself.
If you are passing the suppliers invoice to your client, what you are saying is 'your supplier' is supplying 'your client' directly. If that's the case it should have nothing to do with you from a VAT perspective. If you're treating it as your turnover, then you should be charging VAT on it.

VAT isn't the kind of thing to mess around with. Get an accountant to help you if there's anything you're unclear on. The money spent is well worth it rather than being personally liable for VAT you didn't realise you should have been collecting.
 

MichelleSinead

New Member
Messages
8
Insurance is exempt anyway.

I'd expect the purchase from the unregistered supplier to be classed as exempt too, a non-VAT registered business can't make zero rated (or any other VAT rate) supplies.

Thanks Ciru75, you just made it clear with that last line, I was sure there was a reason and you've hit the nail on the head! Thank you!
 
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