VAT questions (threshold and backdating business VAT expenditures)

pjuegos

hi all,

I have a couple of questions about VAT. Any help would be great!!!

• I registered a business around September 2010.
• The business started trading in March 2012
• The annual turnover won't exceed the threshold of €70,000 in respect of the supply of goods

Since the company does not exceed the threshold, I know we are not obliged by law to register for VAT. However, I have a couple of questions:

1. If the annual turnover never exceeds the €70,000 threshold, does that mean that you never pay any VAT?
2. During the period September 2010 -March 2012, the business incurred of many VAT included expenditures. If we register for VAT now, at the time of doing the first VAT return can we back date the claim to include the VAT incurred in purchases during the S 2010 -M 2012 period?

Thanks a lot for your help!!!


pg

dbran

Hi

If the annual turnover never exceeds the threshold of €75000 for sale of goods then you do not have to charge VAT on your sales to your customers. You will however be charged VAT on the supplies of goods and services made to you. This will be a cost to you.

If you decide to register for VAT voluntarily you may not backdate the registration and can only register from the current VAT period onwards.

Dbran

pjuegos

very clear. thanks!