Tax implications for small online business

K

Komori

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I am a paye worker. Considering setting up a small online business.
Basically I will be buying components of a product, paying vat on them. Assembling them and selling online in Ireland only.
I expect to be well below the vat threshold to register for vat.

Do I charge vat and pass it on to revenue?
What portion of what I earn is liable for income tax? Profit? Sales income? Postage fees?

Finding it hard to get this info clearly online.
Thank you!!
 
Komori said:
I am a paye worker. Considering setting up a small online business.
Basically I will be buying components of a product, paying vat on them. Assembling them and selling online in Ireland only.
I expect to be well below the vat threshold to register for vat.

Do I charge vat and pass it on to revenue?
What portion of what I earn is liable for income tax? Profit? Sales income? Postage fees?

Finding it hard to get this info clearly online.
Thank you!!
Click to expand...

If you are below the vat threshold and do not opt to register for vat then you can't charge VAT. You will be charged income tax on your nett taxable income after deducting allowable expenses incurred. Read the various pages in the link below and have a chat with an accountant before you start.

Starting and running a business

Information about the tax implications of starting a business, paying your tax and the initiatives available for start-up businesses.
www.revenue.ie www.revenue.ie
 
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