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Paying VAT for short-term consultancy work.

  • 01-11-2012 4:54pm
    #1
    dastardly00
    Registered Users, Registered Users 2 Posts: 13,524 ✭✭✭✭


    Hey,

    I'm sure something similar to this has been asked in some form before, but I am quite confused with my particular situation.....

    I have recently finished a 4-year postgraduate Ph.D. in an Irish university. So, during that period I have not been 'working'/'paying tax' as such.

    The university has offered me some consultancy work that will last only 2 weeks, and it will cost them approx. €1,500 for my services. For payment, I will be invoicing the university, I won't be employed by them. The university might want me to do some more short-term consultancy work in the coming future (this would be a period of approx. 2 weeks again).

    I am wondering if I need to add VAT onto the invoice that I will be giving the university, and do I need to register for VAT?

    Additionally, what do I need to do then to declare tax from these earnings? (I am currently seeking full-time employment in a company, and not planning to become a full-time consultant/self-employed).

    Any help is appreciated.


Comments

  • #2
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    You do not have to register for VAT if you are providing services that do not exceed the registration threshold of €37,500 per annum.

    You should return the additional income to revenue on Form 12.

    Hope this helps

    dbran


  • #3
    dastardly00
    Registered Users, Registered Users 2 Posts: 13,524 ✭✭✭✭dastardly00


    dbran wrote: »
    Hi

    You do not have to register for VAT if you are providing services that do not exceed the registration threshold of €37,500 per annum.

    You should return the additional income to revenue on Form 12.

    Hope this helps

    dbran

    Thanks dbran,
    So do I add VAT to my invoice and then return the VAT to the revenue using Form 12??


  • #4
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    You do not add vat because you are not registered for VAT.

    You are not registered for vat because you do not trade enough.

    What dbran was talking about is declaring the income on a self-assessment form. Forget about VAT it does not apply to you, however you must pay income tax just like other self-employed people (this is what you are now btw).


  • #5
    dastardly00
    Registered Users, Registered Users 2 Posts: 13,524 ✭✭✭✭dastardly00


    srsly78 wrote: »
    You do not add vat because you are not registered for VAT.

    You are not registered for vat because you do not trade enough.

    What dbran was talking about is declaring the income on a self-assessment form. Forget about VAT it does not apply to you, however you must pay income tax just like other self-employed people (this is what you are now btw).

    Oh right, I understand now!
    Thanks to yourself and dbran for clearing that up, it's much appreciated.


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