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  #1  
Old 13-04-2012, 11:12 AM
Muffin01
 
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Default V.A.T. registration

Have a friend who registered himslef for Income Tax on 01.01.2009. Income Tax Returns for '09 & '10 are still outstanding. He did not register for VAT. He had a small turnover in 2009 but in 2010 secured a big contract and had sales to the UK of GBP170,000. Made very little profit as income was spent on goods and services from the UK. I have told him there may be a potential VAT problem.

Can he backdate the VAT registration and put the invoices through a 0%. Can he reclaim the UK VAT incurred?
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  #2  
Old 13-04-2012, 06:13 PM
capnhand capnhand is offline
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Hi

What was the nature of the work done in the UK?


Kind Regards

capnhand
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  #3  
Old 13-04-2012, 10:32 PM
Muffin01
 
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Hi capnhand,

Event management/organiser. He organised/promoted a few major events in the UK. Paid for hotels,car hire etc to run the event and then invoiced for these thus incurring UK V.A.T.

Thanks
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  #4  
Old 14-04-2012, 08:01 AM
capnhand capnhand is offline
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Who did He invoice. Were they business customers or non business customers.
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  #5  
Old 15-04-2012, 07:29 PM
Muffin01
 
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all invoices were business related. Invoices sent to companies. manily to do with the organising of golf events around the UK
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  #6  
Old 16-04-2012, 11:23 AM
capnhand capnhand is offline
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Hi

I believe that you do have a potential VAT problem. The only question is it in the UK or in Ireland.

You are engaged in supplying a service to UK companies, business to business.

The place of supply is therefore the UK. Therefore on the supplies to your UK customers there is no exposure to Irish VAT.

http://www.revenue.ie/en/tax/vat/lea...-services.html

However as the total of the services exceeds the registration threshold for VAT in the UK which is 73000 you will have to register for UK VAT and pay over the VAT due to them at the relavent UK VAT rate. You should also be able to reclaim all the UK VAT incurred however you should get professional advise on the UK VAT issues.

Hope this helps

capnhand
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  #7  
Old 16-04-2012, 10:51 PM
Muffin01
 
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thats great,

thanks for your help

much appreciated
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