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  • 06-06-2017 8:29pm
    #1
    magar88
    Registered Users, Registered Users 2 Posts: 13 ✭


    Hi all i am looking to start an online store and this will be my 1st business.
    Im really struggling to find info on tax implications regarding registering as a sole trader while being an employee at the same time.

    Does any body have experience in this area?Also i have been in touch with suppliers but majority of them require a vat number can i get around that?

    Any help would really be great.

    Thanks in advance.


Comments

  • #2
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    magar88 wrote: »
    Hi all i am looking to start an online store and this will be my 1st business.
    Im really struggling to find info on tax implications regarding registering as a sole trader while being an employee at the same time.

    Does any body have experience in this area?Also i have been in touch with suppliers but majority of them require a vat number can i get around that?

    Any help would really be great.

    Thanks in advance.

    Firstly, there's no issue with being a sole trader and PAYE employee at the same time.

    With regard to the online store, is this dropshipping?

    With regard to the VAT number, they ask you for this because if you are registered for VAT, they won't charge you their local rate of VAT on your purchase. You instead have to account for the VAT here in Ireland, at Irish rates. You can claim an input credit for the same amount if the purchase is related to your business then, leaving you a neutral liability.

    You aren't obliged to register for VAT unless your VATable sales are over €75K. It is worthwhile registering however, as you can claim back the VAT incurred on business related expenses.


  • #3
    magar88
    Registered Users, Registered Users 2 Posts: 13 ✭magar88


    Hi thanks for your info I really appreciate it.Yes drop shipping will hopefully make up 90% of my business.Do you have any experience in this field?

    Regards

    Stephen


  • #4
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    magar88 wrote: »
    Hi thanks for your info I really appreciate it.Yes drop shipping will hopefully make up 90% of my business.Do you have any experience in this field?

    Regards

    Stephen

    Hi Stephen,

    this is becoming more and more common, queries wise, here in work. Basically, you would be classed as an agent, as you are not holding the stock for sale, you are a go between for the seller and the end user.

    Generally speaking, you would charge VAT at 23% for the service you provide. This is a pretty complex area however. It might be worth doing some research on the Irish Taxation Institute website, for example.


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