Sole trader VAT return

M

Martaa

Registered User
Messages
12
I am currently doing some book keeping for a sole trader who started trading in May 2010, Due to a delay he was only able to register for VAT in July 2010 (this month).I contacted the Revenue to find out how he could claim the VAT for May through June and they told me it was not possible however he could claim VAT for July-August in September.

Is it possible for me to do a VAT return for May – June as he had a lot of expenses during this time and would be entitled to VAT repayable.



Any advice or help you could give me is appreciated.
 
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Pre-Registration VAT Reclaims

While there is generally no provision for backdating VAT registration, you may claim a credit for the VAT content of stock for resale held at the beginning of the two-monthly taxable period for which you first registered. That is, if you register for VAT on the 10th of February, you may reclaim credit for stock held on or purchased from the 1st day of the preceeding month, January-February being a single tax period. However you are not entitled to a vat credit for capital goods i.e. plant & machinery, buildings, vehicles, fixtures, fittings etc., held at the time of registration.
 
No.

However, if you go to a professional adviser who has a good working relationship with Revenue, they can work around this issue.
 

What was the reason for delay?

I would think when Tr1 was sent in you bascially would have backdated it to say first April and it would have came out/registered from 01/04/10

or

sent a letter in now saying date on Tr1 was incorrect and give correct date.

I would assume in May 2010 their was an active bank account as well to prove trading

Also weigh up pros/cons- If you recalim vat on purchases you have to charge vat on sales for period
 
The reason for delay was: he asked me for help in June, I have filled in TR1 and gave it to him, then by mistake he sent it to the wrong address (to O'Connell st instead of his Revenue district). I have contacted Revenue district to find out if they got TR1, they told me to wait until Revenue in O'Connell St will send it to them which I think never happened.
So in July I send another TR1 to the correct address. And then I found out we cant claim VAT for May-June.
The date of commencement on TR1 was 01/05/2010 which was correct.
He opened his business Bank account in July and all of the transactions are in cash.
Maybe I should contact Revenue and talk with some other person...
 
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