Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

VAT registration as a sole trader

  • 08-04-2009 4:18pm
    #1
    SKYDOG
    Closed Accounts Posts: 51 ✭✭


    I am looking for advise. Is it worth my while registering for VAT if I am a sole trader which is engaging in training activities that are priamrily VAT exempt?

    Any advise appreciated? Thanks


Comments

  • #2
    515
    Closed Accounts Posts: 150 ✭✭515


    I would think 'yes'. Then I would think you could claim the VAT on your purchases of stationery/equipment that you need to provide the training... renting of the room? Business cards? Buying a projector or pc?


  • #3
    leitrim lad
    Closed Accounts Posts: 1,013 ✭✭✭leitrim lad


    i agree with 515
    i am a registered soletrader ,along with several directorships in limited companies, and if they all go belly up i still have the sole trader to fall back on,
    it only takes about a week to get it all registered, and they normally give you a vat number using the same digits as your pps number, and you would be surprised how much you can save on purchases and rental ,by claiming the vat back,


  • #4
    SKYDOG
    Closed Accounts Posts: 51 ✭✭SKYDOG


    I'm convinced! cheers.


  • #5
    joolsveer
    Registered Users, Registered Users 2 Posts: 2,297 ✭✭✭joolsveer


    I am a sole trader for the last few years and I registered for VAT at the start. I was able to claim back tax on buying a van etc. There is some paperwork to do but returns are now every six months rather than every two.


  • #6
    lecheile
    Registered Users, Registered Users 2 Posts: 703 ✭✭✭lecheile


    SKYDOG wrote: »
    I'm convinced! cheers.
    Be careful SkyDog - If you are primarily delivering zero rated VAT services the revenue can limit the about of VAT you can claim back on purchases related to that activity. Its not as simple as register and claim everything back.


  • Advertisement
  • #7
    SKYDOG
    Closed Accounts Posts: 51 ✭✭SKYDOG


    Thanks lecheile, I presume that it is not that straight forward, there has to be some pain somewhere. I decided to go ahead anyway, i think the pros outweigh the cons. Not looking forward to the two month returns but I spoke to the revenue dept and they have said that it is likeky that my return period will extend after my first year of trading.


  • #8
    aidan.connolly
    Registered Users, Registered Users 2 Posts: 250 ✭✭aidan.connolly


    Hi,

    Just a couple of things to add, Vat Exempt and Zero Rated are two very different vat rates. If the services you provide are Zero rated, then there should be no vat recovery issues on your purchases .
    However Vat exempt services allow no vat recovery on any connected expenses etc with the exempt service.

    Training is always one that you need to account for Vat correctly.

    Regards

    Aidan


  • #9
    SKYDOG
    Closed Accounts Posts: 51 ✭✭SKYDOG


    Agree, training is a funny old thing when it comes to VAT. I spoke the someone in the VAT office and they werent able to give me a clear breakdown of what is Vat Exempt and what is Vat Zero! As far as I can make out, pure training is Vat Exempt, however if I engage with Mentoring or consultancy services I have to charge Vat. I will play this one by ear, i have engaged an accountant that seems to know how to work the system in regards to Training consultancy.


Advertisement