VAT - best use of it

G

gorms

Guest
Hi

We are small company which recieves alot of vat , but does not pay alot of vat, due to fact our suppliers are abroad.

Can anyone suggest any ways of optimising this vat within the business. We will have to pay about 50,000 to revenue.

Can we buy a company car ?
 
VAT

Can we buy a company car?

Yes, but you will have to sell it with VAT when the time comes.

As a good accountant will tell you, using a personal car, coupled with claiming mileage and daily allowances (civil service rates) can be much more benfeficial, to some businesses.

Also, if you are paying VAT, you are making money.......be thankful.

Look on the fact that you are importing and not paying VAT on the goods, as a paper exercise, whereby you don't have to claim that VAT back.
 
VAT- best use of it

recieves alot of vat
Click to expand...
Technically you don't!
You collect a lot of VAT for the State!
The best use you can put it to is to hand it over on time!
 
?

Hi Unreg, I would be really interested to know, what the exact purpose of your comment was?

It wasn't related to the question asked and which was obviously asked in best faith by somebody who may not fully understand fiscal issues.

It always amazes me when some users of the site "go for the jugular", if they see the slightest percieved opening, and hence take away from the real values that this valuable forum offers.
 
Re: ?

Can we buy a company car?

Yes, but you will have to sell it with VAT when the time comes.
Click to expand...

VAT deduction claims are NEVER allowed for the purchase of a company car. If such a deduction is claimed, the Revenue will pursue collection of the amount involved plus interest and penalties in the event of an inspection or audit, or if the matter comes to their attention in some other way.
 
Vat

Sorry Tommy, I was presuming that he just wanted to claim back the VAT related to a car purchase.

I only, unqualifiedly, answered as he hadn't got one.
 
Hi gorms

I didn't and don't understand your question.

Unreg gave a very clear explanation of how VAT works. It seems to me that you could learn from his explanation rather than attack him.

Brendan
 
something missing?

" It seems to me that you could learn from his explanation rather than attack him." - where is the attack Brendan? Was something edited out of the thread?

MAC
 
Re: something missing?

gorms - amongst all the answers above, I'm not sure if it is clear that the €50,000 you are about to pay over to Revenue *never* was yours, other than being in your bank account as a timing issue.

I take it that your income from sales for the period was about €300,000. The fact is that €50,000 of this always belonged to the Revenue and you simply collected it for them, the other €250,000 belongs to you.

If you have been thinking that the entire amount was your income then you will need to re-adjust your profit calculations.

z
 
Re: something missing?

Sorry Gorms

The attack came from Michael, not you:

Hi Unreg, I would be really interested to know, what the exact purpose of your comment was?

It wasn't related to the question asked and which was obviously asked in best faith by somebody who may not fully understand fiscal issues.

It always amazes me when some users of the site "go for the jugular", if they see the slightest percieved opening, and hence take away from the real values that this valuable forum offers.
Click to expand...

Brendan
 
?

Can someone explain the company car thing? I suspect the original poster was going to get a company car to reduce the amount of VAT owed.

so, VAT owed = €50,000
Buy company car worth €30000 (including VAT of about €5000)

New VAT amount owed = €45000

Is this not correct?
 
Attack

It wasn't an attack as such, just a question as to why the "muinteorish" finger-wagging comment;

"The best use you can put it to is to hand it over on time!"

Sorry!
 
Car thing

VAT on cars is not allowed to be reclaimed unless it part of stock in trade

eg cars sales or care hire etc

Stu
 
Attack

No prob Mick!

The reality of the advice was that unless it was remitted in a timely manner there could be, contrary to popular belief, a COST to a VAT registered entity.
This would take the form of penalties, interest on late payments and the VATman taking an unhealthy interest in your future returns....
So besides breaking the law you could find that VAT does have cost implications (besides the hidden cost of accounting for, collection of and remitting these funds, collected on behalf of the state)...

No "hairbun and hornrim" finger wagging...
Just straightforward good advice!
 
VAT

One thing I can never understand about VAT is why people are expected to collect it for the revenue for free?

Surely the revenue should have to pay traders for the hassle of collecting this tax for them?
 
Re: VAT

Surely the revenue should have to pay traders for the hassle of collecting this tax for them?
Click to expand...
And presumably Revenue should also pay employers for collecting PAYE & PRSI? And pay self-employed for submitting tax returns? And pay me for submitting my Med1 form for tax relief etc etc etc?
 
Re: VAT

Should the Revenue also have to pay employers for collecting PAYE ?

Should they have to pay car dealers for collecting VRT ?

z
 
M1 form

Rainyday,

Now that you mention the M1 form do you know of anywhere online that I can download it, I looked on revenue.ie but could not fine.

Thanks in advance.
 
Re: M1 form

See [broken link removed] - I reckon you should now pay me for finding the form for you! ;)
 
You must log in or register to reply here.
Back
Top