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VAT for self-employed - HELP!

  • 08-07-2015 5:30pm
    #1
    Konata
    Closed Accounts Posts: 6,164 ✭✭✭


    I've been reading Revenue's site and I thought I was understanding VAT but I've just got a letter from Revenue with my registration number and I'm a little confused! Would really appreciate any help.

    So quick background - I registered as self-employed with Revenue at the end of May. I do freelance translation, currently not in any other employment. I only earn roughly 100-200 a month so it's not very much at the moment. I'm registered with a company that has offices in Dublin but my work (so far) actually comes from their Tokyo office.

    From my understanding, I don't need to charge VAT on my invoices as the work is coming from outside of the state right? I registered for VAT anyway when I registered as self-employed and today I got my VAT number. On the letter it says that I have to do a return following the 19th day of every 2 month taxable period using form VAT 3 - do I still need to do this even if I don't charge any VAT in that time period? Is there any sort of minimum threshold since I earn so little? And finally, where do I get VAT 3 form - do they send it out or can you just download it or something?

    So sorry for all the questions. I think I've managed to figure out the other taxs I'm liable for but the VAT keeps confusing me. Would appreciate any advice!


Comments

  • #2
    chickenlicken2
    Registered Users, Registered Users 2 Posts: 171 ✭✭chickenlicken2


    Konata wrote: »

    From my understanding, I don't need to charge VAT on my invoices as the work is coming from outside of the state right? I registered for VAT anyway when I registered as self-employed and today I got my VAT number. On the letter it says that I have to do a return following the 19th day of every 2 month taxable period using form VAT 3 - do I still need to do this even if I don't charge any VAT in that time period? Is there any sort of minimum threshold since I earn so little? And finally, where do I get VAT 3 form - do they send it out or can you just download it or something?

    Rules can be checked http://www.revenue.ie/en/tax/vat/guide/supply-of-services.html#section3
    Just ensure you are submitting a valid VAT invoice to your client.

    Yes you need to return as you are registered. If you are not charging VAT then VAT on sales is zero.

    You can include your VAT on purchases, if you are not charging VAT then you will be in a refund position. Review Revenue website for what is allowed.

    Register for Ros you can submit online.


  • #3
    Konata
    Closed Accounts Posts: 6,164 ✭✭✭Konata


    chickenlicken2 wrote: »
    Rules can be checked http://www.revenue.ie/en/tax/vat/guide/supply-of-services.html#section3
    Just ensure you are submitting a valid VAT invoice to your client.

    Yes you need to return as you are registered. If you are not charging VAT then VAT on sales is zero.

    You can include your VAT on purchases, if you are not charging VAT then you will be in a refund position. Review Revenue website for what is allowed.

    Register for Ros you can submit online.

    Thank you for your reply, really very helpful! I'm currently in the process of registering with ROS so that's good to know I can just do it online.

    I don't have any purchases so I guess for the moment I'll just be zero on everything!


  • #4
    chickenlicken2
    Registered Users, Registered Users 2 Posts: 171 ✭✭chickenlicken2


    Konata wrote: »
    Thank you for your reply, really very helpful! I'm currently in the process of registering with ROS so that's good to know I can just do it online.

    I don't have any purchases so I guess for the moment I'll just be zero on everything!

    No problem. Best of luck.


    Look at VAT on Mobile phone bill, Internet, telephone office supplies if you are using them for your work.


  • #5
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,888 ✭✭✭✭Calahonda52


    http://www.revenue.ie/en/tax/vat/guide/supply-of-services.html#section3 shows u exempt if business to business

    Re the expenses side and VAT on inputs such as fone and stationary, it has to be exclusively for the business so looking at the numbers involved not worth it in my opinion.

    If don't charge VAT and do start reclaiming VAT then you run a higher risk of an inspection

    “I can’t pay my staff or mortgage with instagram likes”.



  • #6
    chickenlicken2
    Registered Users, Registered Users 2 Posts: 171 ✭✭chickenlicken2


    Calahonda52 wrote: »

    If don't charge VAT and do start reclaiming VAT then you run a higher risk of an inspection

    Fair point, you may get a query. However there are a lot of businesses supplying exports only or zero rated goods who are always in a refund position and the Revenue are well used to this.


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