Question about making first VAT return?

barbeck23

I am just about to make my first VAT return, I owe in or around €300 for a two month period and the VAT I have paid is only around €30. I have been working as a sole trader since January 2010 but didn't register for VAT until May 2010, can I claim the VAT I have paid from January to May from the €300, i.e. my expenses through the business?

Any help greatly appreciated.

R.

AndyJB

barbeck23 wrote: »

I am just about to make my first VAT return, I owe in or around €300 for a two month period and the VAT I have paid is only around €30. I have been working as a sole trader since January 2010 but didn't register for VAT until May 2010, can I claim the VAT I have paid from January to May from the €300, i.e. my expenses through the business?

Any help greatly appreciated.

R.

Morning,
I'm afraid not. You can only claim VAT from the actual date you were VAT registered, as per confirmation letter you should have received from the Revenue.

All previous sole trader expenses can be used when doing your tax returns in 2011.

Best of luck

PS All VAT and tax returns can be done on-line (revenue.ie). It makes it simpler than filling in the various paper forms they use.

RUDOLF289

AndyJB wrote: »

Morning,
I'm afraid not. You can only claim VAT from the actual date you were VAT registered, as per confirmation letter you should have received from the Revenue.

All previous sole trader expenses can be used when doing your tax returns in 2011.

Best of luck

PS All VAT and tax returns can be done on-line (revenue.ie). It makes it simpler than filling in the various paper forms they use.

Hello Barbeck23,

I believe that it is possible to claim back VAT on expenses to set up your business, even if they are incurred prior to the registration coming through. Perhaps this extract from the VAT guide may be of assistance

2.16 Registration procedures
Every applicant for VAT registration must complete either a form TR1 or TR2, each of which is obtainable from the Revenue District responsible for the persons tax affairs or from the Revenue website.
Registration is effective from the beginning of the next taxable period of two months after the date on which the completed application is received, or from such earlier date as may be agreed between the Revenue District and the applicant. In the case of a person not obliged to register but who is electing to do so, the effective date will be not earlier than the beginning of the taxable period during which the application is made.
A hard copy of the completed form, signed and dated should be sent to the local Revenue District where the taxpayer is established. Non-established persons should address the completed form to IRDS, Dublin City Centre Revenue District, 9-10 Upper O’Connell Street,Dublin 1.
Applications for sole traders, trusts and partnerships should be made on form TR1 while form TR2 applies to limited companies.
Any change in the particulars supplied by a trader for the purposes of registration (for example, a sole trader becoming a limited company or the cessation of a partnership) must be notified to the appropriate Revenue District within 30 days of the change.

I suggest to have a word with Revenue, I am sure they would be prepared to back date and allow you to claim VAT back prior to registration. However, if you have been doing business prior to registration than you also will have to remit VAT on the work you have invoiced.

Hope this helps

Regards,
Rudolf289