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VAT Question for Newly self employed person

  • 16-11-2010 11:04am
    #1
    pipelaser
    Registered Users, Registered Users 2 Posts: 580 ✭✭✭


    Hi Guys,
    Just starting a sales job that will involve a lot of Driving. Its completely commission based.
    I will nedd to Purchase the following
    • Shirts and Ties
    • Shoes
    • Jacket
    • Writing Material
    • Commercial Vehicle or Car
    • Mobile Phone & Hands Free Kit
    • Business Cards
    • Laptop
    Two Questions
    1. Im just wondering if I need to Register for a VAT number Before i purchase any of these items?If I buy them Before, will i be able to claim back VAT on them?
    2. What percentage of the price can i claim back on the above items? Can I claim VAT back on Fuel, Phone bills and the like? If so, what percentage? How is it worked out?
    Thanks guys :)


Comments

  • #2
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Hi,

    If your turnover is expected to be over €37500 per annum then you should register for VAT. You can only claim back VAT from the date that you are registered.
    You can recover VAT on business expenses with a few exceptions cars (in general)& food.
    From your list your can get back on - Writing Material
    Commercial Vehicle
    Mobile Phone & Hands Free Kit
    Business Cards
    Laptop all VAtable at 21%


  • #3
    Toblerone1978
    Registered Users, Registered Users 2 Posts: 684 ✭✭✭Toblerone1978


    pipelaser wrote: »
    Hi Guys,
    Just starting a sales job that will involve a lot of Driving. Its completely commission based.
    I will nedd to Purchase the following
    • Shirts and Ties
    • Shoes
    • Jacket
    • Writing Material
    • Commercial Vehicle or Car
    • Mobile Phone & Hands Free Kit
    • Business Cards
    • Laptop
    Two Questions
    1. Im just wondering if I need to Register for a VAT number Before i purchase any of these items?If I buy them Before, will i be able to claim back VAT on them?
    2. What percentage of the price can i claim back on the above items? Can I claim VAT back on Fuel, Phone bills and the like? If so, what percentage? How is it worked out?
    Thanks guys :)

    Are you sure you are self employed? Despite that you're income is pure commission and you will have to purchase the above, you still may be an employee!

    The EU directives specifically states that employment is not a VATable activity. So if you are an employee, not only do you not have to register for VAT, you can't register for VAT based on this activty.

    If you are self employed and you are registering for VAT (assuming the company you're working for is VAT registered, its likely to make more sense to register for VAT to get the VAT input on the costs) be careful with the "commercial vehicle". Too many times did I see people buying what they thought was a "commercial vehicle" and then to find out it wasn't and couldn't claim back the VAT on the vehicle.


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