Starting busness - Register for VAT or NOT? (80% SERVICES & 20% SALES)

M

Mr.Mario

Guest
Hi, Just starting business as sole-trader on 1'st of October 2008 and I'm so lost about everything...!!! I need help, if anyone can give me an advice - would be great!

I will list most what I can:

1) I'm planing to earn up to EUR70k-EUR80k per year
2) i have Registered the business name already on www.CRO.ie and have opened a bank account for business...
3) Shop lease is ~EUR20k per year incl.VAT
4) Calculated that ESB + broadband + phone line would fit to 5k a year
5) I will be the owner, manager, and I.T.Engineer myself in the shop all the time (Unless I'll get to busy I will have to get receptionist then :) )
6) I will provide electronic goods repair & maintenance services and maybe would sell few bits and pieces...

Lets say I'm doing business for first 6 months and I allready have ~ EUR50K income - and its clearly visible that I going to reach another EUR50K in the next 6 months...how should I do? - register for VAT from the begining or how else?

I don't know what is the turnover for 2008 / 2009 , and what is better when just starting business for the first time... Register for VAT or DONT REGISTER...

What about income TAX - How is it calculated from the i.e. EUR70K-EUR80K I'm planing to have?

thanks kindly for all yours opinions!
 
1) check out posting guideline

2) Unless sales of GOODS exceed 90% of turnover then the VAT registration threshold is €37,500p.a. See [broken link removed] Page 21 2.2(f) on Thresholds. Your turnover expectations are therefore over the threshold and registration would be mandatory.

3) Income Tax, PRSI & Levies will be calculated on Income(after VAT) less tax allowable expenses (after VAT).
 
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