VAT Threshold

[ccbkd]

I registered as a Sole Trader last year to provide professional Services, at around November I exceeded the threshold limit of €37,500, My final Invoice for 2009 included a charge of 21.5% VAT. I returned the VAT to revenue in January with a form 3, so far this year I have been unable get any work, but I have been promised a good contract in the coming weeks which is unlikely to exceed €37,500 for 2010, this being the case my question is as follows do I revert to not charging VAT for new Tax year until I again reach the threshold as stated above, or once Threshold (for first time) is passed you much charge VAT at 21.5% for future regardless of year on year considerations

 

[Domo]

The VAT threshold applies on a 12 month rolling position - if you believe you will exceed the threshold in the following 12 months you havbe to register for VAT.
It does not apply as and when you actually cross the threshold.

If you will be under the threshold indefinitely, then you should consider de-registering fro VAT, but as with all such decisions, you should seek professional advice from your tax advisor.