Hi --Quick query, cannot find a direct answer to what i am looking for. but a friend of mine is in business for himself for the past six months, he is not VAT registered. Most of his work is domestic. the turn over for the six months in business was approx €35k-€40k max. there are alot of bills that he would be charged VAT for total approx €300min per month to €500. Should he be VAT registered. Many thanks for any help you can give.
I've always wondered what the big deal is if you don't register for VAT?
There's obviously some sanction but you're not defrauding the Revenue or your customers...does anyone know happens?
You are breaking the law and are defrauding revenue.
You are breaking the law and are defrauding revenue.
How are you defrauding the Revenue?
If I work as a consultant and make say, 25K per annum I charge a client 200 Euro for doing something. No VAT.
If I work as a consultant and make say, 50K per annum I charge the same client 200 Euro plus VAT at 21%. If I wasn't VAT registered I'd just charge the 200 Euro. Where's the "defrauding the revenue"? It's merely a procedural error, an oversight. There's nothing overly dodgy!
It would be dodgy because the consultants competitors who have the same turnover of 50 k per year and who comply with the law have to pay a percentage of their turnover in vat to the revenue commissioners.
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