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!
 
can anybody give some peace of advice?

thanks...
 
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).