Vat threshold

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glynner

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I am unclear as to the VAT threshold for a sole trader painter & Decorator. I did look at the revenue site but may have missed where the thresholds are . Is it 36,500 ?

Can someone tell me if during the tax year you feel you are going to exceed the threshold figure before the year end 31st Dec , can you register for Vat any time during that year ? What happens in the situation that you just exceed the threshold near the year end and don't register .

Many thanks
Love this site
 
Thanks KlausFlouride that's great we can elect to register anytime and that's why I want to be sure
 
glynner said:
Thanks KlausFlouride that's great we can elect to register anytime and that's why I want to be sure
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That's incorrect. If you now expect your turnover to exceed the threshold over the next 12 months, you must register NOW.

It is compulsory, not voluntary, and Revenue will make short work of you if your turnover exceeds the limit for a year where you haven't registered.

A crazy system for tiny businesses but there you go.
 
T McGibney said:
That's incorrect. If you now expect your turnover to exceed the threshold over the next 12 months, you must register NOW.

It is compulsory, not voluntary, and Revenue will make short work of you if your turnover exceeds the limit for a year where you haven't registered.

A crazy system for tiny businesses but there you go.
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I think you may be misreading what Klaus said. The statement is correct, you can elect to register anytime, but subject to compulsory registration as you (also correctly) point out in certain circumstances.
 
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Jon Snow said:
I think you may be misreading what Klaus said. The statement is correct, you can elect to register anytime, but subject to compulsory registration as you (also correctly) point out in certain circumstances.
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Electing to register and compulsory registration are mutually exclusive.

Once you've crossed the turnover threshold, there isn't any discretion - you must register with immediate effect.
 
Yes, apologies if that was ambiguous, if you think you're going to exceed the threshold, registration is mandatory.
 
Hi all only checking in now so if we think we may exceed the threshold we can register now and moving forward charge vat but with regards previous sales pre registration when no vat was charged we do not go back to seek the vat element on them ?
 
The threshold is 36500 + vat at the relevant level for your goods/services.

So for painting (13.5%?) your turnover would need to exceed about €41,000 before it is mandatory.

You can register below that amount.

Sales and purchases up to the date of registration are not subject to vat return.
 
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