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Help with VAT

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  • 16-06-2014 10:14pm
    #1
    Djgav911
    Registered Users Posts: 18 ✭


    I have just started a business with a colleague of mine and we are now registering for vat as our turnover threshold has surpassed €70k. We are an audiovisual business and have been contracted to provide staging, lighting and sound for a new festival in Wicklow. From our suppliers, we are being charged 23% vat on the equipment we rent. Do we charge 23% on top of that to our client? Will he then in turn add vat to his ticket selling price?

    Also, if we do a vat return on what we pay on vat, do we get a big cheque for €18,000 or is it cancelled against the vat that we take in? Thank You!
    Tagged:


Comments

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    #2
    beanie10
    Closed Accounts Posts: 466 ✭✭beanie10


    I assume since you have been contracted in you have a price agreed.
    If so the supply of sound equipment should be included in your contract price.
    the amount of vat you charge the client depends on the value of goods compared to labour(2/3 rule) ie. if more than 2/3 of the overall nett invoice is what you are charging for material then you charge the complete invoice at 23%. If not then you charge the 13.5% vat. Before invoicing check that your client is not vat exempt in this case you charge 0% VAT.
    BI-monthly you should complete your VAT 3 returns which is payable before the 23rd of following month. VAT 3 is basically the difference in vat on sales and purchases. If you are due money back from revenue you can off set this against you P30 returns ie payroll deductions (prsi,paye,usc, etc)


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    #3
    dbran
    Moderators, Business & Finance Moderators Posts: 2,094 Mod ✭✭✭✭dbran


    Hi

    Whether the customer is exempt or not you still have to charge the VAT.

    dbran


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    #4
    Mr. Incognito
    Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    Firstly get an accountant to set you up.

    Secondly get a good accounts package

    Thirdly read the guide to vat in the stickies so you understand how vat works


  • Options
    #5
    mozattack
    Registered Users Posts: 1,908 ✭✭✭mozattack


    ^ good advice


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    #6
    Legend100
    Registered Users Posts: 736 ✭✭✭Legend100


    dbran wrote: »
    Hi

    Whether the customer is exempt or not you still have to charge the VAT.

    dbran

    I think he must have got confused with 13b authorisation and being exempt


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    #7
    Djgav911
    Registered Users Posts: 18 ✭Djgav911


    beanie10 wrote: »
    I assume since you have been contracted in you have a price agreed.
    If so the supply of sound equipment should be included in your contract price.
    the amount of vat you charge the client depends on the value of goods compared to labour(2/3 rule) ie. if more than 2/3 of the overall nett invoice is what you are charging for material then you charge the complete invoice at 23%. If not then you charge the 13.5% vat. Before invoicing check that your client is not vat exempt in this case you charge 0% VAT.
    BI-monthly you should complete your VAT 3 returns which is payable before the 23rd of following month. VAT 3 is basically the difference in vat on sales and purchases. If you are due money back from revenue you can off set this against you P30 returns ie payroll deductions (prsi,paye,usc, etc)

    Thanks so much for your reply, I fully understand it now. Thanks again!


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