Questions regarding taxation

brophs

This will be very basic and probably quite stupid, but hopefully someone will indulge me as I'm pretty clueless about this stuff.

I have recently registered for VAT. What impact does this have on my purchases? I see a lot of places advertise their prices both with and without VAT included. Can I claim back any of this if I pay VAT on a purchase or does that only apply to purchases in the course of business? As an example, say I want to buy an iPod, can I reclaim VAT on that, or would it only apply to something like, say, a printer for work?

If so, do I offset the VAT paid against the VAT I have received in the course of business?

Thanks in advance.

2moreMinutes

You can only reclaim VAT on items purchased for your business.

brophs

Great. Cheers. So, for example, am I right in saying that say I receive €100 in VAT on sales and spend €50 in VAT on the printer, that I only have to make a payment of €50.

Or have I misunderstood that?

2moreMinutes

That is correct.

VAT on sales/receipts - VAT on purchases/expenses = Cheque you write to the Revenue.

Mr. Incognito

I suggest you read the guide to VAT in the stickies or on the revenue website