Should a new business register for VAT

C

claypigeon

Guest
Hello,

I'm looking to start up a small clay pigeon shoot initially, and hopefully (fingers crossed) expand as the business grows. I'm projecting an income of approx €15k for year 1. I know that thta figure is well below the obligatory value to register for VAT, but my question is, is there a benfit for me by being VAT registered? ALso, if I am registered for VAT, then do I have to charge VAT to all the clients for the service provided...to me, if this is the case, this don't my current prices go up by 21% ???

Any help, suggestions would be appreciated,

Des.
 
If you are buying lots of gear and investing in equipment then you can only claim the VAT back if you are registered.
If this VAT amount will greatly exceed the income up to the obligitory limit then it would make sense to register.
If you are not spending much then wait until you have to.
 
woods said:
If this VAT amount will greatly exceed the income up to the obligitory limit then it would make sense to register.
Click to expand...

...except that the Revenue have the option to force you to repay to them any gain made by registering, should you wish to de-register later on.
 
What is the profile of most of your prospective clients? If they are mainly corporates then probably no harm registering for VAT. However if most are going to be individuals then it might make sense not to register until you have to, to keep your prices more competitive.

If this is the case you will have to decide whether this benefit outweighs not being able to claim back the VAT on purchases as woods has indicated.
 
ubiquitous said:
...except that the Revenue have the option to force you to repay to them any gain made by registering, should you wish to de-register later on.
Click to expand...
I was not suggesting that it be a temporary registeration just to get the VAT back on the initial set up costs but that if they are going to have to register down the road when the turnover goes above a set limit then it would be a shame to have missed the initial clawback.
 
Hi, I was told that the revenue allowed you to de-register after 6 months , Didnt know that you had to pay back the VAT already claimed Im confused .
 
Hi.. i started a small business last sept, my accountant advised me not to register for vat.. i only worked part time, my earnings were approx 15,000, does any one know, will i have to pay tax for the year?
 
the mai rose said:
Hi.. i started a small business last sept, my accountant advised me not to register for vat.. i only worked part time, my earnings were approx 15,000, does any one know, will i have to pay tax for the year?
Click to expand...
Your tax will depend on your total income and not just this part.
 
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