VAT Qs

Jurga78

Hi everyone, have some VAT questions
1. If I buy goods which are 23% VAT and make a product which is 0% VAT, can I reclaim VAT ?
2. I can't reclaim VAT on fuel, as far as I know, but what if it's for a commercial vehicle, like a tractor?
3. If I'm a VAT registered Sole Trader do I have to have invoices on everything I buy for business (printing paper, computer, pens etc) or cash receipts would be enough? Can I reclaim VAT on all those expenses ?

Was studying so hard and now I feel like I know nothin ... :eek:

imtdub

Jurga78 wrote: »

Hi everyone, have some VAT questions
1. If I buy goods which are 23% VAT and make a product which is 0% VAT, can I reclaim VAT ?
2. I can't reclaim VAT on fuel, as far as I know, but what if it's for a commercial vehicle, like a tractor?
3. If I'm a VAT registered Sole Trader do I have to have invoices on everything I buy for business (printing paper, computer, pens etc) or cash receipts would be enough? Can I reclaim VAT on all those expenses ?

Was studying so hard and now I feel like I know nothin ... :eek:

1. Yes you can claim back VAT
2. There was something about VAT can't be claimed on Petrol but on Diesel it can be....but not sure, they might have changed the rules now.
3. Yes, you're supposed to keep the invoices, cash receipts alone won't suffice.

Jurga78

Thank's for the prompt answer !
What about the goods themselves , would they go to Purchases or Expenses Accounts ? (goods for manufacturing)

imtdub

Jurga78 wrote: »

Thank's for the prompt answer !
What about the goods themselves , would they go to Purchases or Expenses Accounts ? (goods for manufacturing)

that would be purchases - cost of goods sold.
double check with other people in regard to VAT on fuel though

Jurga78

Thanks a mil

aidan.connolly

Hi,

I would suggest having a meeting with one of the above, who should be able to answer you queries. It would be worth the cost.

Be sure that it is 0% rate for vat and not Vat exempt as these are two totally different situations.

Good luck with your business.

Aidan

Jurga78

Yes, thank's Aidan, I've read in the revenue site that one can request a revenue officer visit... Does anyone have any experience? What would officers do ? Answer our questions or just point out when and what we're obliged to pay.

mark_m360

Jurga78 wrote: »

Yes, thank's Aidan, I've read in the revenue site that one can request a revenue officer visit... Does anyone have any experience? What would officers do ? Answer our questions or just point out when and what we're obliged to pay.

You can claim VAT back on Diesel only, not petrol. You must have invoices to back up your VAT Returns. This goes for Sales & Purchases. There must be the VAT number on the invoices in particular, along with the co name, address, invoice no, date, net/vat/gross figures etc.

Drop me a PM if you need more help. I work in practice and have done many Vat Returns.