New business ..vat register or wait

cocopops999

Hi,

Just wondering if anyone can help? I'm in process of setting up a small business from home selling babywear. I'm aware I'm not required to register for vat until I hit a certain threshold, however, am I making life more complicated by not? I'm trying to import from Europe, UK & China, but the vat issue is very confusing. If I register, I can reclaim vat on items bought with vat paid. Childrens clothes are zero rated in Ireland, so I'll be selling them at vat 0%. If I register for vat, does this prevent me being double charged by country I'm purchasing from & once clothes arrive in Ireland, once I give them my vat number? Am I going to cost myself more money registering or not? Everyone keeps telling me not to register as I don't have the pain of returns and don't have to charge it, but surely I have to charge vat for delivery?

I am waiting on a start up course to commence, but trying to get ahead abd get things moving.

Thank you for any advice.

C.

SureYWouldntYa

You're actually expected to register from when your anticipated sales reach the thresholds in any continuous 12 month period, €85,000 for sales at present and €42,500 for services, rather than when you actually hit that turnover level. For example, if you purchase €40,000 worth of goods for resale between Jan and March 2026 in a business that normally has a 4 times markup, you'd be anticipating sales of €160,000 in the coming months hence the requirement kicks in.

Suppliers from outside Ireland should zero rate their goods to you as a B2B supply of goods. You would then be required to account for the VAT on your VAT returns, there are different rules whether its EU or non-EU.

I'd recommend engaging an accountant because it's not straight forward and quite a bit to get your head around, your time will likely be better spent building the business than worrying about the VAT

cocopops999

Thanks for that..yes it's a minefield..I think that's probably the best thing...thanks for replying. 😊