VAT thresholds: sole traders and limited companies

[dave the valuer]

I hope someone can help as I'm having a bit of difficulty understanding how VAT works. I'm a self employed valuer. My turnover is going to exceed €37,500 this year and so, as far as I know, I have to register for VAT. I was wondering is the threshold the same if I was to become a limited company? I only carry out valuations (within the jewellery industry) and as my cost of sales is low (stationary - basically) and theres no VAT on my office rental (my biggest expense), the low low threshold and 23% VAT is going to make a massive hole in my income this year. Any advice is much appreciated.

 

[Joe_90]

The VAT threshold applies to taxable persons so sole traders, partnerships and companies have the same threshold.

Before anyone suggests form a company to trade alongside the sole trader the anti-fragmentation rules would aggregate the turnover for the VAT registration threshold.

Are all your customers private individuals?

 

[dave the valuer]

I was afraid of that. Thanks for confirming it though. At least I know now.

Business is about 70% private individuals and about 30% trade (jewellers, loss adjustors etc)