VAT registration

pauldoo

Just to settle an argument;

If a company is not registered for VAT, but during the course of the year they go over the thresholds, do they;

1. Register for VAT and re invoice all the clients for the year
2. Register for VAT and invoice clients with VAT, from the date they went over the threshold??

Thanks

Paul

Corkbah

if they go over the threshhold during a fiscal year wait until the following year and start issuing VAT invoices.

(just my opinion - I'm not qualified)

capefear

Register for VAT and invoice clients with VAT, from the date they went over the threshold

nompere

pauldoo wrote: »

Just to settle an argument;

If a company is not registered for VAT, but during the course of the year they go over the thresholds, do they;

1. Register for VAT and re invoice all the clients for the year
2. Register for VAT and invoice clients with VAT, from the date they went over the threshold??

Thanks

Paul

You're obliged to register at the point when it is apparent that you will exceed the threshold. So with a goods threshold of €75000, that point is reached when sales start averaging over €6250 per month, unless you have clear reasons (believable by Revenue) why that level of sales will not be maintained.

This what Revenue say:

In the case of supplies in the State and intra-Community acquisitions, registration is obligatory where
certain turnover thresholds are exceeded or are likely to be exceeded in any twelve-month period

http://www.revenue.ie/en/tax/vat/leaflets/vatguide_2008.pdf

You'll find the passage on page 21.