Which type of Biznit and VAT affairs

Effluo

Hey everyone,

I'm starting up a small computer and electronics retail which will also be doing computer repairs.

I have everything ready to go but i'm not sure which type of trader/company i should register it as...

It will only be operating 2 days a week for 6 months of the year(due to academic requirements) and 6 days for the other 6 months.

Also VAT is somewhat of a large question for me.
Can someone tell me how VAT works for retail units?
Am i correct in saying that there is a certain level of tradin which is not applicable to VAT.

Even if someone could just point me in the direction of a website or organisation which could just answer my questions and not seek further interest.

Thanking you,


P.S. this is in the North Wexford Area

dbran

Hi

I think the best thing to do is to trade initially as a sole trader. Then if the income you earn becomes relatively large you should consider changing to a company.

As regards VAT, once your turnover goes above 37500 you are obliged to register for VAT. Once you are registered you will have to account for VAT on all of your turnover. You will have to add VAt of 21.5% on your sales while taking a deduction of this amount for the VAt you have paid on your supplies. The net difference you pay over to the revenue every two months.

Regards


DB

Effluo

So if i don't register for vat does that mean that my customers can't claim for it either?

This would surely be a huge dissadvantage when doing services or new systems for businesses...

I am aware that i could just charge less due to the fact that VAT isn't included in my price when servicing, but when the business requires a new product or a new part for a computer then i would not be able to compete.

Did i read this correctly?

dbran

Hi Efluno

If you dont register for VAT you will not be able to recover the VAT you have suffered on your supplies and it will therefore be a cost to you. Your competitors who are VAT registered will be able to recover this cost. So therefore your costs will be higher and as you cant vary your price to compete your profit margin will be lower.

(I think this is the question you are asking )

Regards

DB

VO

You need to talk to someone who can explain to you the benefits of each type of registered entity . I have used www.getregistered.ie. Excelent service and great advice

Effluo

VO wrote: »

You need to talk to someone who can explain to you the benefits of each type of registered entity . I have used www.getregistered.ie. Excelent service and great advice

Cheers this is really what i was looking for thanks!