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Sole trader expenses

  • 14-10-2018 10:54pm
    #1
    nick.halligan
    Registered Users, Registered Users 2 Posts: 10 ✭


    Looking at registering as a sole trader and buying a log splitter and beginning to process firewood.
    If I register as a sole trader am I able to claim the vat on the log splitter back ?


Comments

  • #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    nick.halligan wrote: »
    Looking at registering as a sole trader and buying a log splitter and beginning to process firewood.
    If I register as a sole trader am I able to claim the vat on the log splitter back ?

    Yes if you register for vat. Unless your turnover is over a certain amount. I think it's €37,500 you don't have to register for vat. But you can if you want.


  • #3
    Effects
    Registered Users, Registered Users 2 Posts: 9,760 ✭✭✭Effects


    You'll have to add vat on to the price of the firewood you sell as well.


  • #4
    nick.halligan
    Registered Users, Registered Users 2 Posts: 10 ✭nick.halligan


    [Deleted User] wrote: »
    Yes if you register for vat. Unless your turnover is over a certain amount. I think it's €37,500 you don't have to register for vat. But you can if you want.

    So I have the choice of registering for vat before 37500. If I register I can claim vat back on expenses but have to add vat on to firewood sold ?


  • #5
    Alucan
    Registered Users, Registered Users 2 Posts: 105 ✭✭Alucan


    nick.halligan wrote:
    So I have the choice of registering for vat before 37500. If I register I can claim vat back on expenses but have to add vat on to firewood sold ?


    Yes


  • #6
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,873 ✭✭✭✭Calahonda52


    why 37.5k and not 75k as the threshold, its the sale of goods unless he is just splitting g as a service?

    “I can’t pay my staff or mortgage with instagram likes”.



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  • #7
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Calahonda52 wrote: »
    why 37.5k and not 75k as the threshold, its the sale of goods unless he is just splitting g as a service?

    Yeah that's right. I only supply services so that's what applied to me. It's 75,000 if you are supplying goods or goods and services where 90% of the turnover is from goods.

    Revenue site has all the information here

    https://www.revenue.ie/en/vat/vat-registration/who-should-register-for-vat/index.aspx


  • #8
    rovertom
    Banned (with Prison Access) Posts: 150 ✭✭rovertom


    I'd strongly consider where you hope to sell to before deciding on vat registration or not.
    If you plan to sell to business, registering for vat won't really affect your pricing.
    If on the other hand you plan to sell direct to public yourself, having to charge vat will push up your price or reduce your profits compared to not bring registered.


  • #9
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,873 ✭✭✭✭Calahonda52


    rovertom wrote: »
    I'd strongly consider where you hope to sell to before deciding on vat registration or not.
    If you plan to sell to business, registering for vat won't really affect your pricing.
    If on the other hand you plan to sell direct to public yourself, having to charge vat will push up your price or reduce your profits compared to not bring registered.

    he says he is not selling only providing a service so the profit issue is the sellers problem.
    If the seller is registered for vat and tax compliant, then the OP should register for VAT now.
    However if there is a big VAT refund claim on a large capX item day 1, they may come and have a look see as its a common enough scam.

    “I can’t pay my staff or mortgage with instagram likes”.



  • #10
    rovertom
    Banned (with Prison Access) Posts: 150 ✭✭rovertom


    Calahonda52 wrote: »
    he says he is not selling only providing a service so the profit issue is the sellers problem.
    If the seller is registered for vat and tax compliant, then the OP should register for VAT now.
    However if there is a big VAT refund claim on a large capX item day 1, they may come and have a look see as its a common enough scam.

    I meant if the op is offering service to private persons as opposed to business, registering may make him more expensive and lose work.


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