VAT Registered

[Affluence!]

hey guys, just wondring about being vat registered for an established compnay providing a service, what are the pros and cons of being vat registered, there has to be a catch somewhere and how do you pay in other ways for being vat registered? thanks!

 

[Joe1234]

If you are providing a service and your turnover exceeds €25,500 then you are obliged to register for VAT. You charge VAT on all your sales, and reclaim VAT on all VATable (?) purchases, ie goods for resale, phone, fuel, repairs etc. At the end of every 2 month period if the vat you have collected on sales is greater than the vat deducted on purchases then you pay over the difference to revenue, and vice versa.

 

[Affluence!]

ok say your business doesnt have to pay vat, such as a bookseller or language school, can you not pay vat, but claim vat back you make on purchases?

 

[extopia]

No, that would be too good to be true!

You must be VAT registered to claim back VAT on purchases. And if you ARE VAT registered, you MUST charge VAT on your sales.

 

[Joe1234]

Some items are exempt from vat or have no vat on them. In this case, you should be able to claim back vat on purchases.

 

[extopia]

Well why would you claim back vat on vat free purchases?

Again, there's no way to claim back VAT unless you are registered for VAT.

 

[Joe1234]

Well why would you claim back vat on vat free purchases?

Again, there's no way to claim back VAT unless you are registered for VAT.

Sorry extopia, Maybe I dndn't make my previous post clear. what I meant to say was that some SALES items are exempt from vat or have no vat on them. If someone trades in items that are vat free, and are registered for vat then they will be able to claim it back.

By the way, farmers who are not registered for vat can claim back vat on farm buildings, land drainage etc. I think too that mushroom producers can also claim back some element of the vat on their sales, though I am not 100% certain on this.