VAT question for small business

sozbox

I have found the following on the revenue site regarding the VAT rate applicable for take away cold foods and drinks:


By concession, following prior agreement with the local Inspector of Taxes where the premises provides facilities for the consumption of food and drink on the premises, the Zero rate may be applied to take-away sales of cold Zero-rated food and drink. N.B. Accurate records must be maintained. However, the Standard rate applies to take-away sales of soft drinks, fruit juices, alcohol, bottled waters, confectionery. Take-away sales of cakes liable at the Reduced rate.

However, this seems to indicate that this rate applies when the business has an existing facility for consumption on the premises, I cannot find any information regarding a business that does no have these facilities.

Can anyone advise?

Alan Shore

http://www.revenue.ie/en/tax/vat/leaflets/food-and-drink.html

Is that any help.

sozbox

Perfect! Thank you!

The Pontiac

I have another VAT related question (no need to start a new thread).

I'm registered for VAT since 01/09/13. Would I automatically be on a two month return system? If so, when do I need to file the returns? Could I file on 1st November? is there a deadline? I'm due VAT back on the purchase of a new van. That money will be handy to pay my preliminary tax.

My accountant has already set me up for ROS. I've been self-employed for nearly three years, but only registered for VAT recently.

Thanks.

Alan Shore

1st of Nov should be fine. Expect a letter looking for the back up of your claim may delay your refund.

The Pontiac

Alan Shore wrote: »

1st of Nov should be fine. Expect a letter looking for the back up of your claim may delay your refund.

Thanks for the reply.

I'll submit everything on 1st of November. Hopefully they won't delay too long. I might tell my accountant to include details of the van purchase too, if this is possible on ROS. Might speed things up.

The Pontiac

Alan Shore wrote: »

1st of Nov should be fine. Expect a letter looking for the back up of your claim may delay your refund.

Today I've been doing the VAT for September. Surely I don't have to enter each individual purchase, with details, into an excel spreadsheet i.e. each time I purchase diesel or goods for work?

I just added them altogether i.e. purchases @ 23%, sales @ 13.5% and sales @ 23% and came up with a Net figure.

Am I obliged to keep a better record? I have all the receipts, so it's pretty straightforward if I do get audited. I just keep each month separate.

It'd take me ages otherwise.

Thanks again.

prettyrestless

The Pontiac wrote: »

Today I've been doing the VAT for September. Surely I don't have to enter each individual purchase, with details, into an excel spreadsheet i.e. each time I purchase diesel or goods for work?

I just added them altogether i.e. purchases @ 23%, sales @ 13.5% and sales @ 23% and came up with a Net figure.

Am I obliged to keep a better record? I have all the receipts, so it's pretty straightforward if I do get audited. I just keep each month separate.

It'd take me ages otherwise.

Thanks again.

I wouldn't exactly say obliged to keep better records, but it would be beneficial in the long run. There's always a possibility of a revenue audit somewhere down the line, and personally, I'd rather be as prepared as I can if such a situation arose.

Obviously I don't know the size of your company, but perhaps hiring a bookkeeper for a few hours a week/month might be something to consider...

Alan Shore

If adding up VAT with a calculator then you will possibly do it 3 times to get the correct answer.
Take a few minutes to slot them into excel, it will be to your benefit in the long run even if it's just the numbers.

The Pontiac

prettyrestless wrote: »

I wouldn't exactly say obliged to keep better records, but it would be beneficial in the long run. There's always a possibility of a revenue audit somewhere down the line, and personally, I'd rather be as prepared as I can if such a situation arose.

Obviously I don't know the size of your company, but perhaps hiring a bookkeeper for a few hours a week/month might be something to consider...

I'm a sole trader, work in forestry contracting and currently setting up an eCommerce store.

I might look into hiring a bookkeeper down the line, if it all gets on top of me.

Alan Shore wrote: »

If adding up VAT with a calculator then you will possibly do it 3 times to get the correct answer.
Take a few minutes to slot them into excel, it will be to your benefit in the long run even if it's just the numbers.

Tell me about it! I think I just need to learn excel - it will be of benefit in the long run. Maybe if I did it weekly, instead of monthly or bi-monthly, then it wouldn't be as daunting.

prettyrestless

The Pontiac wrote: »

I'm a sole trader, work in forestry contracting and currently setting up an eCommerce store.

I might look into hiring a bookkeeper down the line, if it all gets on top of me.



Tell me about it! I think I just need to learn excel - it will be of benefit in the long run. Maybe if I did it weekly, instead of monthly or bi-monthly, then it wouldn't be as daunting.

Excel is fine once you get used to it, after a couple of months you'll fly through it. Just be aware that you will need to prepare business accounts somewhere down the line, so having complete records for VAT, etc will make the process easier in the long run and save you some money on accountancy fees.

emeldc

If it's any help to anyone, I have a small shop (drycleaners) and had a spot check from the Revenue a while back, so I kind of know what they want from a sales point of view at least.
Each sale should be recorded on a cash register with a date and time.
The register should be totaled each day with a 'Z1' read.
At the week end the register should be totaled with a 'Z2' read to give a weekly total.
Weekly sales dockets together with their till roll readings should be filed in a box file. The same box file file can be used for each two month vat period.
A customer receipt should be available as a till receipt or a written receipt.

He didn't ask much about the expenses side of things but I keep two excel spreadsheets, one for petty cash every day expenses, and an expense account for the bigger stuff like rent, rates, esb etc. I give a gross value, net value and vat breakdown on each expense although I do total the diesel expenses and enter it as one figure. I also file the invoices in the same box file as the sales dockets. When I showed the tax man how I kept the paperwork he said it was 'perfect' and said that if I ever had a Vat audit that the bottom line was that I 'must be able to provide a paper trail'.

Legend100

emeldc wrote: »

If it's any help to anyone, I have a small shop (drycleaners) and had a spot check from the Revenue a while back, so I kind of know what they want from a sales point of view at least.
Each sale should be recorded on a cash register with a date and time.
The register should be totaled each day with a 'Z1' read.
At the week end the register should be totaled with a 'Z2' read to give a weekly total.
Weekly sales dockets together with their till roll readings should be filed in a box file. The same box file file can be used for each two month vat period.
A customer receipt should be available as a till receipt or a written receipt.

He didn't ask much about the expenses side of things but I keep two excel spreadsheets, one for petty cash every day expenses, and an expense account for the bigger stuff like rent, rates, esb etc. I give a gross value, net value and vat breakdown on each expense although I do total the diesel expenses and enter it as one figure. I also file the invoices in the same box file as the sales dockets. When I showed the tax man how I kept the paperwork he said it was 'perfect' and said that if I ever had a Vat audit that the bottom line was that I 'must be able to provide a paper trail'.

This is good advice emeldc but just in case the OP gets worried about Z reads and the like, the requirement to keep records as detailed as that only applies where it is a cash business with regular transactions. This requirement was only introduced a few years ago too (in line with the revision of the audit code of practice if my memory serves me well)