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claiming vat

  • 20-08-2009 11:23am
    #1
    betonit
    Registered Users, Registered Users 2 Posts: 526 ✭✭✭


    Hi,
    If you have food retatil business and you dont charge VAT on food. Can you still reclaim the vat on purchases for equipment desiel etc. Or you cant because theres nothing to balance it off?

    So instead you write the full amount of expenses including vat against tax on profits?


Comments

  • #2
    honeymonster
    Registered Users, Registered Users 2 Posts: 601 ✭✭✭honeymonster


    You need to be registered for VAT to claim VAT back


  • #3
    Beasty
    Administrators, Social & Fun Moderators, Sports Moderators Posts: 78,393 Admin ✭✭✭✭✭Beasty


    Most food is zero-rated for VAT. You should register if you are above the VAT registration limits (including sales that are zero rated), and this will allow you to reclaim VAT on your business expenses.

    If you are below the VAT registration limit, you are unable to reclaim the VAT, but you can get tax relief on the VAT you have incurred on business expenses

    Mor information on VAT on food and drink can be found on the Revenue website:

    http://www.revenue.ie/en/tax/vat/leaflets/food-and-drink.html


  • #4
    betonit
    Registered Users, Registered Users 2 Posts: 526 ✭✭✭betonit


    great info, thanks.

    Another question which I cant seem to find the answer to.
    If you start trading (goods) and you believe you are going to be under the threshold and you charge eg €10 per item (no vat added), then you go over are you liable to pay a vat return on all items sold up to then.
    Do your prices then jump to 12.15 the next day.

    Is an already large trading company at a disadvantage against small startups if the startups dont charge vat on the same goods the already trading compnay sells.


  • #5
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Once you register for VAT you are liable to charge VAT at the appropriate rate on your sales from the date of registration onwards. Whether you pass the additional charge on to customers or not is a matter for you to decide. I presume that most of your customers will be not VAT registered and will be unable to reclaim the additional cost.

    You can opt to register for VAT even if below the threshold.


  • #6
    betonit
    Registered Users, Registered Users 2 Posts: 526 ✭✭✭betonit


    dbran wrote: »
    Once you register for VAT you are liable to charge VAT at the appropriate rate on your sales from the date of registration onwards. Whether you pass the additional charge on to customers or not is a matter for you to decide. I presume that most of your customers will be not VAT registered and will be unable to reclaim the additional cost.

    You can opt to register for VAT even if below the threshold.

    thanks for the info. I have no customers (yet). I have few business ideas but want to understand the tax side of things. I might do the TMITI course, it could either help out on a new business or would be a complete change of career path(being made redundant soon)


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