Another VAT question

WHU

Sorry another VAT question.

I'm looking at renting a premises to operate out of. I have been told I will be charged VAT on the rent, plus the items I buy trade (kitchens) to sell on. 99.99% of my customers are households.
So as I can not charge VAT as it will make me uncompetitive, if I register can I claim all the VAT I pay out?

Thank you in advance.

TheCostumeShop.ie: Ronan

I would assume selling Kitchens your going to cross the threshold for VAT in your first year?? So if thats the case then you will have to charge VAT to your customers.

To answer the question yes if you register for VAT you claim back all the vat you pay out and charge VAT on all the sales you make.

WHU

Thank you for your reply, I didn't realise you had to charge VAT, I suppose with the VAT being returned for the purchase of the goods originally I will set my selling price from my purchase price - VAT.

TheCostumeShop.ie: Ronan

Well there is a threshold below which you'll get away without it. Here's what you need to know:

• (a) €37,500 in the case of persons supplying services,

• (b) €37,500 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials,
• (e) €75,000 for persons supplying goods,
• (f) €75,000 for persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to at (b) above) and

http://www.revenue.ie/en/tax/vat/registration/index.html

WHU

Thank you again Ronan, I'll take a look at that..

Lucky Dub

TheCostumeShop.ie: Ronan wrote: »

I would assume selling Kitchens your going to cross the threshold for VAT in your first year?? So if thats the case then you will have to charge VAT to your customers.

To answer the question yes if you register for VAT you claim back all the vat you pay out and charge VAT on all the sales you make.

If you register for VAT and don't make the threshold, I assume you still get treated the same once you start claiming VAT back?

drunkmonkey

If your not Vat registered you have to pay the Vat on the goods you buy from suppliers. So your plan of not paying vat won't work. Your either Vat registered and claim back the Vat or you not vat registered and you pay the vat like an ordinary consumer when buying your stock.

If your business model won't work if you have to pay the Vat as your uncompetitive then your business model doesn't work.
You can't open a business and undercut the guy next door by 21% because your not going to charge consumers Vat.

WHU

Thank you for you reply drunkmonkey, I didn't look at the figures correctly and forgot the VAT I would get back for the goods I have bought from my supplier. :rolleyes: