If I am not registered for VAT, do I charge VAT?

Hello,

Maybe this is a silly question...

But if I am a sole trader and I am not registered for VAT, do I charge VAT?

Thank you

No, but be aware that the turnover level for the registrationof most sole trader businesses is €25500 if your business is not an exempt activity.

Regards,

Ikeano

Ikeanoamback said:

...if your business is not an exempt activity.

Click to expand...

Thank you.

I don't understand your last point though.

I thought you did not need to register for VAT/pay VAT, regardless of the company type, if the company earns under €25k-ish a year?

DublinSteve said:

Thank you.

I don't understand your last point though.

I thought you did not need to register for VAT/pay VAT, regardless of the company type, if the company earns under €25k-ish a year?

Click to expand...

If you are below the threshold you don't need to register and you don't charge or reclaim any VAT

See [broken link removed] for more info.

Hi Dublinsteve,


There are a number of activities which are exempt from vat registration a full list of which can be found from the following link [broken link removed]

Ikeano is right. There is one other slight sting in the tail, that the limit is for a 'tax year' so if you go over the threshold in any year, then all the amounts should have VAT applied i.e. its not prospective. This is difficult to predict so you need to be careful. On balance if your clients are VAT registered themselves, then if you are likely to exceed limit, you should register at start. What business are you in and Ikeano and others will try and assist.

Hi All

I would like to expand on the original query if I may.

I plan to set up as a sole trader and expect to below the threshold and will not register for VAT.

I want to import products from UK and sell to end consumers here.
I may also order from Irish suppliers

1) If I am not registered in Ireland, will the UK supplier charge me VAT

2) If I am registered, does the UK supplier charge me VAT? I assume not, but I charge my customers 21%

3)If I am registered and order from a Irish based supplier, is this zero-rated for VAT purposes, supplier doesnt charge me, and I charge consumer

Thank you for your advice

Further advice on the same subject

Hi all,

I am a sole trader (trading for only 2 months) and nowhere near the threshold to register for VAT.

As I'm not registered, I'm not charging VAT. If it looks like I might hit the threshold, I will register and begin charging (and retroactively calculate what I owe from previous sales where I didn't charge).

I import products from the US and sell them to individuals.

An already very established company has approached me about buying them wholesale. Will it be a problem for them that I am not VAT registered?

Thanks in advance.

Leap

@ Leap & @CharlieC

You both need a tax-advisor - your local high-street accountant should be able to provide the advice you require.

As you are both looking to trade cross-borders, I feel that despite the best of intentions from everyone on this site that there could be some misinterpretation of advice given.

VAT for beginners trading domestically can be challenging to get your head around, when dealing cross-borders, doubly so.

@Kildavin - charliec is long gone (2005 only saw it now!)
@leap

Your US business imports - you would not be charged VAT anyway
Your onward sales - can be a perception that if you are not charging VAT you are a small player etc
If all your customers are VAT registered - you could still register and then claim back the input VAT that you were charged

As Kildavin has said you need to be careful about these thresholds as what is clear is that if you go over the threshold in a 12 month period (Revenue have made this unnecessarily complex) you would be liable on VAT for all the sales in that 12 month period. The usual advice is that is that if all your customers are VAT registered - you would be better of registering as you will be able to claim back the input VAT.

I concur with having an adviser.