Vat reg on sales commission

scwazrh

Registered User
Messages
25
I am currently self employed as a sole trader in the building trade and I am vat registered for the last several years as I was over the threshold for supply of goods and services.I am about to take a job in sales where I will be paid as a self employed person.I will have expenses such as travel, phone and computer etc.
My question is , if you are vat registered do you have to charge vat on all income?I would ike to remain vat registered as I will be paying vat on diesel, phone , car maintenance etc but the company have said that they do not out earnings plus vat .I expect to receive circa €50k in earnings and I do not want to be hit for the vat element of it.
 
Yes you do, as long as the actual activity is VATable. Some things are VAT exempt or Zero rated (not exactly the same thing) which means there is no VAT charged to the customer.

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You would have to ring Revenue to find out what rate you would be charging

Assuming that the commission is VATable, then if you don't want to charge VAT then you could set up a limited company and run the commission income though the company. However if the commission goes over the VAT threshold then you are just back at square one because you will be obliged to register for VAT anyway.
 
If the company are VAT registered themselves, there is no reason for them not to pay you the VAT. You are almost certainly obliged to charge VAT on your sales, and the company should know this.
On another note, it appears from the detail provided that revenue may expect you to be classed as an employee by this company.
 
What business risk are you bearing that makes it self employment - none I would imagine. Its clearly an employment and VAT is the least of your problems then.
 
Its clearly an employment and VAT is the least of your problems then.

Could you elaborate on this for me please?

I am pretty sure that I should charge vat but this company is a fairly well known and long-established company so I would be surprised if they are giving wrong info.I should just clarify though that it's vat in relation to commission I'm talking about. Ie I sell the companies product , they pay me the commission , should I be paid commission plus vat?

A lot of sales jobs advertised do state that you are responsible for your own tax returns to the revenue so it seems that self employment is common in sales, although this is my first time for sales so advice is greatly appreciated and needed.