Should I register for VAT

A

andywozhere

Guest
I've just set up an online business and don't really know what my turnover for the year will be. Should I register for VAT? Are the any disadvantages in registering? I'm a sole trader. Any advice would be much appreciated.
 
Last edited by a moderator:
This will answer some of your questions, hopefully other posters will add to the discussion.

Some of the disadvantages.

1. you have to charge VAT on the goods/services you sell, your goods will be more expensive to your customer.
2. you'll have to be organized and keep good records for your VAT returns

Some of the advantages
1. You can claim back the VAT you pay on your inputs.
2. It gives the impression to your customers that you are a substantial business, a cowboy trader will usually not be registered for VAT.

If your turnover is over a certain limit (about £60'000 in the UK, google it to find out what the limit is in Ireland), then you have no option but to register for VAT, it's a legal requirement.


Louis Cribben
 
See [broken link removed]

If you expect to earn over the thresholds in any particular year, you should register now. If you don't really now (as in, if you are aware of the thresholds and don't know if you will reach them), you can wait until you hit the threshold and then register. Thresholds differ whether you are offering goods or services but the link above the link above should have all the relevant info.

Sprite
 
If your turnover exceeds 35k for services or 70k for products, you must register.

If less than these, it can depend on you customers. Can they reclaim VAT? If not the added vat might make your product expensive, if so, you are better off registering and you can then reclaim vat on purchases as well.
 
If you are a PAYE employee and a sole trader on the side how do you cater for VAT if you aren't registered?
 
CN624 said:
If you are a PAYE employee and a sole trader on the side how do you cater for VAT if you aren't registered?
Click to expand...

If you are under the VAT thresholds then the VAT you pay on purchases/costs/expenses is simply part of the cost you pay and becomes part of your charge. You are not charging VAT as it's irrecoverable.
 
Graham_07 said:
If you are under the VAT thresholds then the VAT you pay on purchases/costs/expenses is simply part of the cost you pay and becomes part of your charge. You are not charging VAT as it's irrecoverable.
Click to expand...

Ok cheers
 
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