REGISTERING FOR VAT HALFWAY THROUGH THE YEAR.

suey71

Hello, I'll be starting my first business in early June and I was wondering about registering for VAT.

If I register in June how would this effect my VAT threshhold?
What I mean is. If the threshold for a commercial business is €75000, for the full business year, what happens if I only trade for 5 months in the first year.

And what if my sales dont hit the €75000 limit after 5 months trading.

I read somewhere that if I dont reach this limit that I would have to re emburse the revenue the VAT that I've claimed back.
Is this true?

DoMyBooks

No you can elect to register for VAT even if you don't hit the threshold.

If your trading business to business it may be beneficial to register for VAT straight away.

If you are dealing with the end consumer it maybe in your interests to hold off registering for VAT as long as its legally possible as you could be increasing your price to the consumer.

greendom

One advantage of registering early is that you'll be able to claim back VAT on any major purchases you make to set up the business.

Niall_G

The thresholds are based on a 12 month period, not necessarily a calendar year. I suggest you consult an accountant when starting your business. Many will have an initial meeting with you without cost or obligation so you have nothing to lose and much to gain!

suey71

Thats good to know Niall.

So in my case, starting in June, I have until June 12months to reach this threshold?

Also thanks for all the other replies.