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Minimum VAT declaration

  • 31-01-2009 2:24pm
    #1
    Fat Joe
    Registered Users, Registered Users 2 Posts: 60 ✭✭


    I have a business as a sideline. The turnover is not to high. I am registered and pay bi-monthly VAT. I have been told that I may be beneath the threshold for paying VAT as my turnover is low. Can someone please tell me what this figure is. I was quoted 75k. Is this correct as I may deregister.


Comments

  • #2
    marizpan
    Registered Users, Registered Users 2 Posts: 443 ✭✭marizpan


    That depends on your trade. The threshold is 37.5k for the supply of services (13.5%) and 75k for supply of goods (21.5%).
    If your turnover drops and you decide to unreg. then there is a 3yr claw back.
    So i guess you would really have to look at your accounts and see if this is to your benefit or not. It might pay for you to wait another year if there was a large clawback.
    Does that make any sense? anyway hope at helps


  • #3
    Fat Joe
    Registered Users, Registered Users 2 Posts: 60 ✭✭Fat Joe


    Thanks, Marzipan. I am doing my accounts for the first time, I am only trading a year. I am under the threshold of 75k. My accountant is going to deregister me. Can I claim this money back. What do you mean by clawback and and the number of years involved. I don't understand how this would not be a benifit to me. Can you elaborate on this. Thanks for the responce, I am completely ignorant when it comes to tax.


  • #4
    marizpan
    Registered Users, Registered Users 2 Posts: 443 ✭✭marizpan


    Joe,
    Generally when a business starts trading, they are in refundable position for several vat returns due to the expense of setting up

    Example1 - Your trading 12 mths, vat paid 5k and vat refunded was 10k. if you decided to unreg. then there would be a clawback of the balance being 5k, which you would have to pay to the revenue.

    Example2 - Your trading 3yrs, refunded vat in first 6 mths was 30k and since then paid 10k and refunded 10k.
    you would benefit by 30k to wait a further 6 mths to unreg. so that there is no clawback.
    The revenue only go back 36mths to check on balance of vat paid/refunded. You have to pay the shortfall

    Hope that helps


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