New Business(VAT) Help

WHU

Hi all,
I am currently unemployed and getting benefits.
I am thinking of advertising a new business idea and any days work I obtain from this I will be informing my social welfare office. The idea is hopefully this will lead to part time and then full time employment.
My question is, I will at some point hopefully be supplying developers etc. with these products and I think they will require a VAT number from me, do I have to be VAT registered if I believe, especially at the begining, I will be below the threshold.
Now I know I could ask the Inland Revenue but i am just after some general information first.

Dabko

Nice one, fair play for deciding to take a chance.

The VAT registration thresholds for small businesses are 35k for services and are 70k in the case of selling goods.

I would say, dont bother regsitering for vat yet until you have established whether you will be a company or sole trader. You will save your self all the headaches of paperwork.

To start, if you have an idea as to what you will be trading under, go and register a business name see http://www.cro.ie/ena/business-registration.aspx. It only costs 20 quid.

Get out and there and start selling. If you see that you may be edging towards towards the thresholds above, by all means, register.

Best of luck with it.

WHU

Thank you Dabko for the incouragement and info

Dabko

WHU wrote: »

Thank you Dabko for the incouragement and info

No worries. Once you start working for your self, and are marginally good at it, you will never look back.

If you want any other info on the dos and donts (wasting money!) give me a pm anytime.

Pixelcraft

one thing to keep in mind is, if you have to pay VAT on the products you buy, then don't charge VAT to your end customers, you have to take the hit.

ve

Actually the VAT threshold for the supply of services is now €37,500; not sure about the supply of products.

My advise is this: Consider the nature of your business, and your compeditors. So what sort of structure your compeditors typically operate under E.g. Sole trader, limited company, etc.

I have no idea what it is you intend to supply (some manner of) developers with, be it goods or services, but you did specify that requesting your VAT number is likely. If you are registered for VAT, you have to charge VAT on top of what you charge and if your customers are VAT registered too, they can claim that extra charge back.

If your customers are not VAT registered and you are, then you still have to charge VAT and your customers will have to pay this extra expense (not making you very attractive to do business with, in this case). This would be especially true if you have many compeditors that are also not VAT registered.

So it depends on your line of business, and your own financial projections. If you believe you will exceed the threshold, then get registered for VAT and possibly re-consider your target market. If you seriously think you won't then don't as it won't affect any of your potential customers because if you're not charging VAT they won't need a VAT number from you, as there will be nothing to claim back.

ve

Dabko wrote: »

If you want any other info on the dos and donts (wasting money!) give me a pm anytime.

I doubt that there is anyone here that wouldn't like to hear any tips or advise you have to offer, even if the majority to fairly well known.

In times like these it's all good. Fair play

Dabko

ve wrote: »

Actually the VAT threshold for the supply of services is now €37,500; not sure about the supply of products.

http://www.frankfahey.ie/issues.details.php?c_id=37&id=250

DubTony

I'd be of the opinion you should register regardless of turnover if your customers are registered for vat.
If you're adding a 15% markup to a €100 product (ex. vat) you'll be selling for
€139.72. This is the same whether you're registered for vat or not.
A vat registered competitor sells the same product to it's vat registered customer for €115 + vat, so the end cost to the customer is €115. If you aren't vat registered the €100 product costs you €121.50 including vat.
Simple really.

WHU

Thank you all for the replies, you've given me a lot to think of

Axwell

Dabko wrote: »

http://www.frankfahey.ie/issues.details.php?c_id=37&id=250

If you are going to suggest he pm you and put up links like you did above at least have the correct info. As someone above posted the VAT threshold for supplies and services is €37,500 and €75,000 for goods. Your link is outdated and giving incorrect info.

http://www.revenue.ie/en/tax/vat/full-intro.html

Dabko

Axwell wrote: »

If you are going to suggest he pm you and put up links like you did above at least have the correct info. As someone above posted the VAT threshold for supplies and services is €37,500 and €75,000 for goods. Your link is outdated and giving incorrect info.

http://www.revenue.ie/en/tax/vat/full-intro.html

no needs to be a pr1ck about it. I use information i find to hand and i would assume a politican would have his sh1t up to date.
I really dont know why i bother even logging in here.

Axwell

It says on it March 2007, since when in this country did you ever trust something a polititian says? This is someones business and your suggesting he pms you for advice, if you are going to just use info "to hand" then maybe hes better sticking here and getting correct information. Your information was wrong and i corrected you for his benefit, no need to go name calling and acting like a child.

Dabko

Good for you!

Axwell

Dabko wrote: »

Good for you!

If thats your attitude to people giving advice and also informing you of correct information then maybe your right asking why do you even bother logging in here.

Dabko

Thank you axwell for your corrective information. My sincerest apologies for my 'attitude', as you put it.;)

GoneShootin

Dabko wrote: »

I really dont know why i bother even logging in here.

Let me help you with that decision.

Banned for 1 week for being a pr1ck.