VAT Question again

Coala

Hi, I am looking for some advice. I will try to explain situation in few words. Person is self-employed and registered for VAT on invoice basis. Goods are bought in from UK and sold zero rated. How would I deal with the VAT for expenses incurred (like carriage, office expenses, and diesel)? There is some VAT what I could claim back, but I have red on revenue that you have to sell non-zero rated goods as well to be able to claim back VAT on expenses.
And second question is what rate I should use when making payment to UK by draft (Stg)? Would it be the same rate what was used for that particular day? And how could I separate purchase payment from bank charges then? I would really appreciate any advice. Thanks

hebeegb

Hi, I am looking for some advice. I will try to explain situation in few words. Person is self-employed and registered for VAT on invoice basis. Goods are bought in from UK and sold zero rated. How would I deal with the VAT for expenses incurred (like carriage, office expenses, and diesel)? There is some VAT what I could claim back, but I have red on revenue that you have to sell non-zero rated goods as well to be able to claim back VAT on expenses.
And second question is what rate I should use when making payment to UK by draft (Stg)? Would it be the same rate what was used for that particular day? And how could I separate purchase payment from bank charges then? I would really appreciate any advice. Thanks

Hi there, im not so sure that you have posted enough information on this, you say that you are on the invoice basis, so im assuming your turning over €1million pa? otherwise im sure you should be on the cash receipts basis, goods at the zero rate are typically, kids stuff, food etc, so if your a retailer, then you can claim vat for all your expenses, and you simply keep a record and claim through your vat 3 as usual, you are not making exempt supplies, so just treat your zero items exactly as you would an item you are selling at say the 21.5% rate. Is it that the supplies you recieve from the UK are actually charged to VAT but that you pay a zero rate because you have a VAT number here? ( thats important) and i dont understand your question about the payments and rate to be used? you can pay in any currency you like, my advice though would be to monitor the rates daily, depending on volume you could make savings by "booking" your stg rate on a given day, so say you decide to buy stuff Monday, and pay by friday, you will gain or loose on the purchase price you ultimatly pay if STG moves up or down against the euro....make sense, either way you should ask your accountant perhaps

gacctax

Hi Guys,
If anyone of you could give me an advice thats would be great!:)

I registered myself for a sole trader, income tax & VAT one week ago. Basically my profession is giving administration serviceis for companies.
They need to get receipts! If I registered for VAT am I able to charge them by [EMAIL="VAT@21.5%"]VAT@21.5%[/EMAIL] ?! Also can I claim back VAT on goods I bought under my business ?

I hope - anyone of you can help me! Thanks a milliion

hebeegb

gacctax wrote: »

Hi Guys,
If anyone of you could give me an advice thats would be great!:)

I registered myself for a sole trader, income tax & VAT one week ago. Basically my profession is giving administration serviceis for companies.
They need to get receipts! If I registered for VAT am I able to charge them by [EMAIL="VAT@21.5%"]VAT@21.5%[/EMAIL] ?! Also can I claim back VAT on goods I bought under my business ?

I hope - anyone of you can help me! Thanks a milliion

If you registered for VAT then you have to charge VAT, and if it is admin, well that is just paperwork, and so 21.5%, you can claim all your receipts that are specific to the service provided, but they must be proportionate, e.g you cant claim all the vat on your diesel car if you only visit the company your providing the service to once a month and its 2 miles up the road, so its all relative, if you issue receipts they will have to have your vat number, and show gross and net amounts, I am assuming its all at the 21.5%, if your supplying labour, to say keep grounds or anything like that, it is 13.5%, you should look at the guides on www.revenue.ie

gacctax

hebeegb wrote: »

If you registered for VAT then you have to charge VAT, and if it is admin, well that is just paperwork, and so 21.5%, you can claim all your receipts that are specific to the service provided, but they must be proportionate, e.g you cant claim all the vat on your diesel car if you only visit the company your providing the service to once a month and its 2 miles up the road, so its all relative, if you issue receipts they will have to have your vat number, and show gross and net amounts, I am assuming its all at the 21.5%, if your supplying labour, to say keep grounds or anything like that, it is 13.5%, you should look at the guides on www.revenue.ie

Thank you for your prompt reply.

Basically - I traveling a lot & I use a lot of petrol!
How much can I claim back from petrol in this case ?
Can I register the profession of my sole trade as "admin&other services" ??

Coala

Hi, thanks for reply. I am a learning accountant. Just in different companies there are different situations. I have not worked before with zero-rated supplies. These are supplies for people with special needs. So I understand I can claim back all business related expenses. That’s good.
About the rates ...In other company where I used to work there was made currency adjustment (gain or loss) at the end of month. But in this situation there are very few transactions and I am confused about to make any adjustments or just use the rate on purchase day and that’s it.

Maybe somebody knows where I could get list of goods/services and rates for them? I know it was before on revenue website but now cannot find it anymore.

gacctax

Coala wrote: »

Hi, thanks for reply. I am a learning accountant. Just in different companies there are different situations. I have not worked before with zero-rated supplies. These are supplies for people with special needs. So I understand I can claim back all business related expenses. That’s good.
About the rates ...In other company where I used to work there was made currency adjustment (gain or loss) at the end of month. But in this situation there are very few transactions and I am confused about to make any adjustments or just use the rate on purchase day and that’s it.

Maybe somebody knows where I could get list of goods/services and rates for them? I know it was before on revenue website but now cannot find it anymore.

I looking for a same list as well :):)