B2B - VAT Concerns

ironclaw

Hi Everyone,

I have a small side line that is more of a hobby. Its a mix between individuals and businesses, however the B2B side is becoming a little bit more common. I don't currently have the turn over required for registration of VAT however most business's want a VAT number and receipts to match.

Forgive my ignorance, but in a B2B sale, VAT is still included on the receipt, correct? And secondly, can one register for a VAT number even if they are below the VAT thresholds? B2B is a large avenue for myself so any input appreciated. I'll be operating as a sole trader if that makes a difference.

Many Thanks!

jimmii

Yes it's on the receipt and yes you can register while not meeting the threshold.

We deal with lots of small suppliers who aren't registered it's strange they would be having an issue with no vat number as it's common enough. You can put your pps number on instead.

ChippingSodbury

You can register for VAT if you are below the thresholds http://www.revenue.ie/en/tax/vat/guide/registration.html#section2

If you sell a widget at €100 + VAT, you will charge an individual €123 and you will charge a business €123. There is no difference from your perspective, however the business (to which you have made the sale) can reclaim the VAT element of the charge i.e. €23: If you are not registered for VAT, they cannot do this.
Once you register for VAT, you can also reclaim the VAT that you pay on purchasing your goods/ services i.e. if you are purchasing the widget at €10 + VAT (€12.30) from Ireland, you can reclaim the €2.30 VAT element. The same applies for anything purchased from within the EU except you don't pay the VAT in the the first place i.e. you are only paying the €10.

ironclaw

Thanks everyone!