I'm not VAT registered. How do I trade with clients who are?

unseenfootage

Hi,

I started a small business recently which is registered for PAYE but not for VAT. It involves importing goods from Africa and then selling either retail to the public or wholesale to other retailers.

The goods were sent via Postal Service and delivered to my door.
I did not receive any paperwork from Customs & Excise and was not billed for any vat (23%) or customs duty (6.5%)

I want to start selling.

My questions are:

1) How do I deal with retailers wrt VAT.
2) How do I deal with public.

regards

Immy

If you are not registered for VAT then you don't charge VAT to any customers regardless of their type.

unseenfootage

Thanks. That is sound....

Loughc

Bear in mind you can only remain unregistered for VAT if the value of goods you are planning on selling each year is less than €75,000.

unseenfootage

Loughc wrote: »

Bear in mind you can only remain unregistered for VAT if the value of goods you are planning on selling each year is less than €75,000.

I'm not that big.......yet.

What happens when I sell to a customer who is vat registered.
Do they add the VAT onto the price they paid?

Another question somewhat related.

I am trading in my personal name which I registered with the CRO.

Would clients be prepared to issue payments via cheque to a personal bank account? I'm not sure if this is acceptable business practice here in Ireland?

Regards

Loughc

For Billing someone who is VAT registered, you bill them the same as someone who is not VAT Registered.

You bill them for the sale of the good, don't add any VAT on. As you're not paying VAT they can't claim back any VAT from the transaction.

If you've registered your own name as the business name then any cheques payable/transfers can be made into your own personal account. I would recommend a seperate bank account, if only for accounting and taxation purposes and for ease of access to information.