VAT query

elle07

Hi,
I recently registered as a company and I'm not sure exactly what I'm allowed claim VAT back on.

Can I claim VAT back on ESB and Gas?

Any info would be really apprecaited,
Thank you.

Mr. Incognito

Here's an excellent resource

http://www.revenue.ie/revsearch/search.jsp

Tha VAT Guide 2008- It's halfway down the page- download it and have a read.

In computing the amount of VAT payable in respect of a taxable period, a registered person may
deduct the VAT charged on most goods and services which are used for the purposes of the taxable
business.

So if the ESB and Bord Gais are expenses incurred by the business, if there is personal use and business use you must apportion. You just take an input credit for the VAT paid in your VAT return

elle07

Thanks a milion

noeleenred

http://www.revenue.ie/en/tax/vat/rates/index.html lets you know the VAT rates which can be quite useful.

El Del

VAT is recoverable on most expenses insofar as they relate to your business activities, however, Revenue will not allow a VAT deduction on the following expenses even if incurred for business purposes:

• Food, drink, accomodation or other personal or entertainment expenses
• Purchase, hire or lease of passenger vehicles. However, since 1 January 2009, 20% VAT recovery is allowed on new cars first registered after 1/1/09 which are used for at least 60% business purposes and have CO2 emissions of less than 156g/km (effectively Category A vehicles for VRT purposes). VAT is usually recoverable on vans, which would not be considered passenger vehicles.
• Petrol - although VAT on diesel is recoverable
• Purchases relating to activities which are VAT exempt

CantThinkOfANam

Sorry to hi jack this thread but a friend of mine has a similiar business to me and he has registered for VAT and is currently in the process of reclaiming VAT. However, he does not charge VAT for the service he supplies. Is this allowed?

My accountant says that I'm not required to register for VAT and I don't have that many expenses.

El Del

CantThinkOfANam wrote: »

Sorry to hi jack this thread but a friend of mine has a similiar business to me and he has registered for VAT and is currently in the process of reclaiming VAT. However, he does not charge VAT for the service he supplies. Is this allowed?

My accountant says that I'm not required to register for VAT and I don't have that many expenses.

It is possible that a business can charge 0% VAT and still recover VAT on its purchases in certain circumstances. What kind of services does the company supply?

CantThinkOfANam

Sorry for delay, been working.

He's a pilot whose contracted out to an Irish airline. Gets paid by a UK contract agency.