VAT question for sub contracter

upinthesky

Could anyone advise me on VAT, i am expected to reach 37k this year so do i need to start adding vat to invoices now or, do i wait until i have reached 37k and then add the VAT?

Also if i do add VAT do i calculate the tax i need to pay before or after VAT?

Any help would be greatly appreciated as iv scowered the internet and cant find a definite answer.

rje66

upinthesky wrote: »

Could anyone advise me on VAT, i am expected to reach 37k this year so do i need to start adding vat to invoices now or, do i wait until i have reached 37k and then add the VAT?

Also if i do add VAT do i calculate the tax i need to pay before or after VAT?

Any help would be greatly appreciated as iv scowered the internet and cant find a definite answer.

Im not an expert , but are you vat registered??

antoinolachtnai

upinthesky wrote: »

Could anyone advise me on VAT, i am expected to reach 37k this year so do i need to start adding vat to invoices now or, do i wait until i have reached 37k and then add the VAT?

As I understand the law, you need to register now or as soon as you can.

Also if i do add VAT do i calculate the tax i need to pay before or after VAT?

VAT has more or less nothing to do with your other tax calculations. VAT is not income. You are only collecting it on behalf of someone else (the ladies and gentlemen of the Revenue Commissioners). This is a simplification of course. It can get a lot more complex. You really need some specific advice to be sure.

Any help would be greatly appreciated as iv scowered the internet and cant find a definite answer.

A few euros spent now getting this sorted out with an accountant would be worthwhile for the long term.

upinthesky

Waiting on cert info from ROS to register for VAT.

I will add VAT to invoices so and pay it when i register as its no loss to me, i think im OK in regards to everything else as i am just dealing with one company so shouldn't really get messy or too hard to handy, i also use an online site which is great for keeping things together and sending invoices,

namenotavailablE

This Revenue PDF should also be helpful about how the system for VAT and sub-contractors works (construction industry focus):

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part02-accountable-persons/reverse-charge-construction/reverse-charge-construction.pdf

BUDDYHOLLY1234

The Vat Legislation is quite clear on this in that if your turnover is in excess of €37,500 you MUST register for VAT on the supply of services such as a Builder.

Once registered you can then claim vat back against any of your purchases of the trade upon which you are charged VAT and put that vat against your own VAT liability to which you charge for your services

This is the Vat chargeable on a bi monthly basis to the Revenue. I.E The Difference between VAT on Your Building Services and Vat on your business related Purchases.

So if you want to charge say €5,000 for your services then you would charge VAT at 5K PLUS Vat of €13.5% = 5675 so money owed to Revenue would be the 675 minus any vat upon which you have been charged for purchases to undertake those services eg vat blocks etc