Vat query

[tyler_d]

Hi

I am setting up my business in about 2 weeks. Now i have a customer already that wants to buy off me NOW. But the problem is that if i buy materials off my supplier, i cant claim my vat back as the business hasnt been registered. I've been told a number of things.

1) I dont have to pay vat as my business doesnt make over €55,000 in its first year so i can tell this to my supplier
2) I can pay the vat and claim it back (But i thought you couldnt claim vat if your business isnt set up yet)

So what can i do?

Thanks

T

 

[Graham_07]

1) Is not correct. Your status as either being VAT registered or not has no bearing on your supplier charging you VAT . They must charge you VAT if the goods are VATable goods and if they are VAT registered. THey have no choice in the matter.

The €55,000 was ( now €70,000 since 01/03/07) the sales threshold that once exceeded you MUST register for VAT. Thst's what your "advisor" may have been referring to. I must say things get really twisted out of reality when people who have no idea what they are talking about try and give advice to other people. I would be extremely wary of taking any further advice from that particular source.

2) You may reclaim VAT only once registered for invoices issued to you after the date of registration. Registration for VAT may in certain cases be backdated to the start of the current VAT period. You may also register voluntarily for VAT even if under the €70,000 sales threshold, and in certain cases this may be advantageous. I'd suggest you contact a qualified accountant ( you'll most likely need one anyway )who could advise you properly.

 

[tyler_d]

Thanks for that. Maybe the simplest solution is to pay my suppliers now and get them to send the invoice to me at the end of the month when the company is set up. Then pretend i paid my supplier in cash.