Sole Trader and VAT

whatnext

Do sole traders have to charge VAT on services?

projected turnover of c. 35k per annum

nompere

You must register for VAT if your supply of services in any continuous period of 12 months exceeds, or is likely to exceed, €37,500.

If you can ensure that in every month your total supply of services is less than €3,125 then you need not register.

The penalties for failing to operate VAT correctly are based on the VAT that should have been charged, and take no account of the profitability or otherwise of the business.

If you decide not to register a business with turnover of €35,000 or so per annum you will need to be very careful.

whatnext

Thank you that was my understanding.

to is really only likely to be €29k now anyway, because I just found out there will 2 months of zero activity, so it's even further from the threshold

bud10

Need also to be weary of the fact that if your turnover is c. 29 -35k in year one and in year 2/3 you exceed the 37.5k threshold, revenue can review the last year of activity pre registration for turnover to ensure you are well below threshold.