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Back Dated VAT Registration

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  • 02-12-2015 10:43am
    #1
    S. Goodspeed
    Registered Users Posts: 418 ✭✭


    Hi guys,

    Looking for some VAT advice...

    My newly established company started trading November 1st (we did modest sales for the last month). While we applied to register for VAT from November 1st (that is the date we included on the app) we did not charge VAT on those sales as obviously we did not any VAT number etc.

    My question is, can I now claim back VAT from November 1st on all my inputs even though I did not charge VAT on sales for the same period? A lot of my inputs are marketing, professional fee, set up related along also with a relatively significant amount of inventory. Probably 75% or so of the inventory bought remains in stock (i.e. was not sold during the period).

    Any help would be greatly appreciated

    Thanks!


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    #2
    Loughc
    Moderators, Business & Finance Moderators, Recreation & Hobbies Moderators Posts: 24,738 Mod ✭✭✭✭Loughc


    You won't be able to claim back VAT on Purchases without bourning the costs of the VAT on Sales. As you've sold the items without VAT you'll find it difficult to recharge the VAT to the customer so you'll have to end up taking the brunt of the hit for Sales.

    Although for the first return your costs will most likely out weigh your takings, meaning you should still have a VAT refund.

    Now that you're registered put the VAT number on all Invoices/Tax Receipts and start charging it to the customer.


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    #3
    S. Goodspeed
    Registered Users Posts: 418 ✭✭S. Goodspeed


    Thanks Loughc, that does make sense although not what I was hoping for obviously!


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    #4
    dbran
    Moderators, Business & Finance Moderators Posts: 2,094 Mod ✭✭✭✭dbran


    If you applied to register for VAT from 1 November that that is the date that you have to charge VAT and operate VAT from. You dont have the choice if you are already registered from that date and you cant simply opt out because you in fact did not charge VAT from that date.

    dbran


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    #5
    S. Goodspeed
    Registered Users Posts: 418 ✭✭S. Goodspeed


    Thanks Dbran,

    For the sales made since Nov 1 to today (when I received my VAT number) I didnt charge VAT because I didnt have a number and wasn't officially registered yet. I can't go back and retrospectively charge them vat now. What would Revenue expect me to do now? I'll get in touch and discuss with them but if you have any insight it'd be great.

    Thanks again.


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    #6
    Loughc
    Moderators, Business & Finance Moderators, Recreation & Hobbies Moderators Posts: 24,738 Mod ✭✭✭✭Loughc


    S. Goodspeed wrote: »
    Thanks Dbran,

    For the sales made since Nov 1 to today (when I received my VAT number) I didnt charge VAT because I didnt have a number and wasn't officially registered yet. I can't go back and retrospectively charge them vat now. What would Revenue expect me to do now? I'll get in touch and discuss with them but if you have any insight it'd be great.

    Thanks again.

    Revenue would expect you to bourne the cost of the VAT yourself. Sadly it's not Revenue's fault you never charged the VAT to your customers from Nov 1st.

    By registering from Nov 1st you've accepted VAT has to be charged onto all your Sales from that date.


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