VAT Registered

zetor 4911

Hi all,
I have a small business which is VAT registered (sole trader- not a company) I also farm and I have been told that my VAT returns should include the farm. Is anyone else in a similar position and if so do you include the farm in your VAT returns?

premier10

If you are a vat registered sole trader for one business by default all your sole trader businesses become vat registered.

Only option to avoid being a vat registered farmer in your instance is to incorporate your other business.

Jack180570

zetor 4911 wrote: »

Hi all,
I have a small business which is VAT registered (sole trader- not a company) I also farm and I have been told that my VAT returns should include the farm. Is anyone else in a similar position and if so do you include the farm in your VAT returns?

As a sole trader it it you that is vat registered so as said above, your farm is also vat registered.

Is it beneficial or necessary for you to be vat registered in your small business? Threshold for registration for a business that is selling products only (no services) is 75k AFAIK so if you are under that and just selling products then you do not need to register. I think it is 35k or 37.5k if you are providing services also.

Other question is whether it is a significant negative on your farming business... depends on scale and type I guess

zetor 4911

Jack180570 wrote: »

As a sole trader it it you that is vat registered so as said above, your farm is also vat registered.

Is it beneficial or necessary for you to be vat registered in your small business? Threshold for registration for a business that is selling products only (no services) is 75k AFAIK so if you are under that and just selling products then you do not need to register. I think it is 35k or 37.5k if you are providing services also.

Other question is whether it is a significant negative on your farming business... depends on scale and type I guess

My business provides a service so the threshold is 37.5K and I am over that.
It's not a big issue if I have to bring the farm into the VAT once I am sure I have to. The other issue is that I buy in weanlings direct from another farmer with no invoice to show the VAT (the mart invoices will show the VAT once you tell them you area VAT registered) so will revenue accept a hand written note (by myself) with the VAT calculated and maybe a photo copy of the cheque attached?.

satstheway

Might be worth keeping the business reg separate. Lower tax and better pension options on business end.

WheatenBriar

If you have an audit,you may be asked to pay back any vat owing from farm sales since the time the other business was registered
For example marts add the farmers flat rate vat refund to your mart sales
You are not entitled to that and should be refunded to revenue in your vat returns
A few years of that will be a lot!
On the flip side any vat on farm inputs (did you buy a tractor or any machinery since you were registered?) is claimable
23% of a 40 k tractor for instance would be nearly 10k
Speak to your accountants