Vat Question

[RedStix]

Could you help me out with something, I sell children's clothing online so I have no VAT but I am VAT registered.
Does this mean I can claim back all my VAT purchases?
What if I don't make over the €75,000 will I have to repay the VAT refund I claim?
I hope this makes sense?????

 

[Graham_07]

If you are registered for VAT then :-
(a) your sales are liable to VAT at the relevant rates, in your case this appears to be the 0% rate.
(b) you are entitled to claim an input credit for any VAT on your allowable business costs.
(c) if you register for VAT while sales are under the sale of goods threshold of €70,000 ( €75,000 from 01/05/08) and if, while sales are still under that threshold, you wish to de-register and if you have had net refunds of VAT then in that instance you must refund any excess VAT reclaimed from Revenue. As long as you remain registered there is no issue on repayment to Revenue of net VAT refunded to you. The reason for this repayment clause is that you have voluntarily registered while not being obliged to do so.