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VAT on entire earnings or just on amount over threshold?

  • 24-10-2019 2:17pm
    #1
    murphf
    Registered Users, Registered Users 2 Posts: 207 ✭✭


    Hi Guys, just making annual self employed return and am near the threshold for VAT- sorry if it is a stupid question, but if I earn lets say 40,000, do I pay VAT on the whole 40,000 or just the 2,500 which is over the threshold of 37,500? Many thanks


Comments

  • #2
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,888 ✭✭✭✭Calahonda52


    VAT on earnings in tax return...?
    Have you not been making VAT returns?

    Anyway it's on the lot, which is called turnover

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



  • #3
    Highroad12
    Registered Users, Registered Users 2 Posts: 43 ✭Highroad12


    If you are over the threshold for VAT registration you should register for VAT and once registered you charge VAT on your invoices. You are just collecting VAT for Revenue.

    It is this VAT that you then pay to Revenue on your bi-monthly VAT3 returns. Sales go on as the T1. And VAT on purchases is T2.

    If you aren't VAT registered yet then you wouldn't have charged VAT on your invoices and therefore have no VAT to pay.

    If you register for VAT from November say, you will only pay Revenue the VAT you collect from November on.


  • #4
    murphf
    Registered Users, Registered Users 2 Posts: 207 ✭✭murphf


    Calahonda52 wrote: »
    VAT on earnings in tax return...?
    Have you not been making VAT returns?

    Anyway it's on the lot, which is called turnover

    No because I wasn’t earning enough


  • #5
    murphf
    Registered Users, Registered Users 2 Posts: 207 ✭✭murphf


    Highroad12 wrote: »
    If you are over the threshold for VAT registration you should register for VAT and once registered you charge VAT on your invoices. You are just collecting VAT for Revenue.

    It is this VAT that you then pay to Revenue on your bi-monthly VAT3 returns. Sales go on as the T1. And VAT on purchases is T2.

    If you aren't VAT registered yet then you wouldn't have charged VAT on your invoices and therefore have no VAT to pay.

    If you register for VAT from November say, you will only pay Revenue the VAT you collect from November on.

    And if I earned more than the threshold but didn’t charge vat because I didn’t know I was over will I need to back pay it? Thanks for the help!


  • #6
    vandriver
    Registered Users, Registered Users 2 Posts: 3,472 ✭✭✭vandriver


    murphf wrote: »
    And if I earned more than the threshold but didn’t charge vat because I didn’t know I was over will I need to back pay it? Thanks for the help!
    If you exceed €37,500 in any 12 month period,not just January to December,you need to register for VAT.
    You really need to get a handle on this,as the consequences can be dire if you neglect it.
    Do you have an accountant?


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  • #7
    murphf
    Registered Users, Registered Users 2 Posts: 207 ✭✭murphf


    vandriver wrote: »
    If you exceed €37,500 in any 12 month period,not just January to December,you need to register for VAT.
    You really need to get a handle on this,as the consequences can be dire if you neglect it.
    Do you have an accountant?

    No, haven’t needed one til now, time to get one I think, thanks for your help!


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