VAT Question

cedargurl

My company began trading in July 2010. I registered for VAT this month (March 2011) as I envisaged reaching the turnover threshold this year. My question is: what VAT I am now liable for, I am liable for all VAT to date since I began trading or just since registering?? Any advice would be greatly appreciated! Thanks

crebel81

cedargurl wrote: »

My company began trading in July 2010. I registered for VAT this month (March 2011) as I envisaged reaching the turnover threshold this year. My question is: what VAT I am now liable for, I am liable for all VAT to date since I began trading or just since registering?? Any advice would be greatly appreciated! Thanks

Hi,

From what I know you are liable for VAT from the date you registered....

nompere

The amount of VAT will depend in part on whether you're registered to pay VAT on the cash receipts basis or the invoice basis. You are liable to pay over to the Revenue the VAT you have either collected from or charged to your customers since 1 March. If you haven't actually shown the VAT on the invoices (though you are supposed to) then the VAT will be 17.355% of your sales less the VAT that you have been charged on what you've bought.

If you sell something for (say) €121.00 then 17.355% of that is €21.00. That's the same as charging VAT at 21% on €100.

J.Ryan

The Revenue will write to you stating the date that your registration is effective from.

If you operate on a cash receipts basis, you are liable for VAT at the rate in force at the time the work was done/service was provided (zero if you were not registered), as opposed to the rate that the funds were received. Revenue sent out documentation to that effect when the rate went to 21.5% a couple of years back (& when it changed to 21% a year later).

If you operate on an invoice basis, it will be the rate quoted on the invoices, however you may wish to reissue and invoices prior to the receipt of the revenue notice as they usually give an effective date of the 1st of the month (as that is what most people place on the TR1/TR2).

ssbob

J.Ryan wrote: »

The Revenue will write to you stating the date that your registration is effective from.

+1 on this

Make sure not to claim for any vat previous to the date of registration either. If I were you I would work off the invoice basis, much easier imo to keep track of it.

cedargurl

Thanks for all the replies, only seeing them now I as thought you were notified everytime someone replied, so sorry for not responding earlier.
Have another question, no paye or prsi has been done for the directors pay since the company started. How do you submit your p30 info and paye/prsi payments for all the wages the director received over the last six months? I know there will be interest and penalties etc which is fine but I only took over this job in March and NOTHING :mad: had been done accounting wise up to then. So I have everything else up to date now except the PAYE/PRSI. Any help would be greatly appreciated! Thanks

ssbob

cedargurl wrote: »

Thanks for all the replies, only seeing them now I as thought you were notified everytime someone replied, so sorry for not responding earlier.
Have another question, no paye or prsi has been done for the directors pay since the company started. How do you submit your p30 info and paye/prsi payments for all the wages the director received over the last six months? I know there will be interest and penalties etc which is fine but I only took over this job in March and NOTHING :mad: had been done accounting wise up to then. So I have everything else up to date now except the PAYE/PRSI. Any help would be greatly appreciated! Thanks

Hi Cedargurl,

Have you registered the company with the Revenue online service? You will be sent reminders of the company has registered as an employer to complete P30 forms etc......just like you get reminders when the vat return is due.

You should probably speak to the revenue directly about this, if this is a start up company they are normally pretty helpful and may offer to audit your company which is good because if you are only taking over this job then you don't want someone elses dead bodies coming out of the wood work in a few years time and you getting blamed for it. Normally revenue will give you 1 chance anyway and you'll be able to set your systems up to work around the deadlines.

cedargurl

hi thanks for that. I think I will give them a call tomorrow and explain the situation, and take it from there.

ssbob

cedargurl wrote: »

hi thanks for that. I think I will give them a call tomorrow and explain the situation, and take it from there.

Keep me posted and if you need any more help just PM me.