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Vat Reg

  • 11-01-2010 11:36am
    #1
    garytuohy
    Closed Accounts Posts: 210 ✭✭


    Hi, looking for some advice on VAT

    My projections for the year meant I didnt have to register just yet but I'm exceeding those projections now and need to get VAT registered.

    What are the benefits of being VAT registered?

    if I was to actually Purchase more than I charge, do I get a Vat Refund?


    what are the negatives then?

    Thanks in advance


Comments

  • #2
    Snowdrop
    Closed Accounts Posts: 148 ✭✭Snowdrop


    garytuohy wrote: »
    Hi, looking for some advice on VAT

    My projections for the year meant I didnt have to register just yet but I'm exceeding those projections now and need to get VAT registered.

    What are the benefits of being VAT registered?

    if I was to actually Purchase more than I charge, do I get a Vat Refund?


    what are the negatives then?

    Thanks in advance

    You can claim a refund if the VAT incurred on allowable expenses exceeds the VAT on sales.
    Optional VAT registration may benefit a business where purchases are mainly at 21.5% and sales are taxable at 13.5%.
    However there can be a clawback of excess refunds if you deregister within a certain time frame.
    Another drawback is where a business deals mainly with non VAT registered customers and then has to effectively increase it's prices once it registers for VAT.


  • #3
    DoMyBooks
    Registered Users, Registered Users 2 Posts: 355 ✭✭DoMyBooks


    If most of your sales are to VAT registered businesses you will be in a slightly better position as they wont mind being charged VAT and you can claim back the VAT on any expenses wholly and exclusively for the business.

    If most of your sales are to non VAT registered businesses / individuals you need to thread carefully as you will now be 21% more expensive. In certain circumstances it may be worth your while turning down sales to stay under the threshold.

    www.domybooks.ie


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