Vat query for small business

win1

Hi, my brother is in contruction business and thankfully is getting back on his feet. He is working with big subcontractors who look after the vat on jobs done. But he is left with receipts for expenses for diesel/purchases of equipment, etc. Should he register for vat and claim refunds. Can I do this on his behalf. A few years back when the business was better the local accountant looked after this but the charges were very high (He lives in a small town). Any advice would be welcome.

paul71

win1 wrote: »

Hi, my brother is in contruction business and thankfully is getting back on his feet. He is working with big subcontractors who look after the vat on jobs done. But he is left with receipts for expenses for diesel/purchases of equipment, etc. Should he register for vat and claim refunds. Can I do this on his behalf. A few years back when the business was better the local accountant looked after this but the charges were very high (He lives in a small town). Any advice would be welcome.

http://www.revenue.ie/en/tax/vat/registration/thresholds.html

If his turnover exceeds €35,000 he is obliged to register for VAT.
If all his customers are VAT registered and his turnover is below €35,000 he would be better off choosing to register as VAT for a non registered person is an expense but can be reclaimed by a VAT registered person.

I don't understand what you you mean by "He is working with big subcontractors who look after the vat on jobs done", can you explain how the big contractor looked after the VAT.

barneystinson

paul71 wrote: »

http://www.revenue.ie/en/tax/vat/registration/thresholds.html

If his turnover exceeds €35,000 he is obliged to register for VAT.
If all his customers are VAT registered and his turnover is below €35,000 he would be better off choosing to register as VAT for a non registered person is an expense but can be reclaimed by a VAT registered person.

I don't understand what you you mean by "He is working with big subcontractors who look after the vat on jobs done", can you explain how the big contractor looked after the VAT.

The accountable person for VAT on a relevant contract in the construction industry is the principal rather than the subbie.

paul71

barneystinson wrote: »

The accountable person for VAT on a relevant contract in the construction industry is the principal rather than the subbie.

Ok, now I know what the op is saying, the 2 points still stand as they are so.