Vat travel agents

Thanks Graham.

Yeah, I reckon it's going to be more hassle than its worth. Frankly, if we have to add VAT on to the proft margin not only does this make us even less competitive cf. the internet, it's also extra paperwork we don't need in a profitless business.

I note that besides Budget sacking 100 staff and closing 14 shops, Falcon have started to shut shops and have made 50 staff redundant. Both Budget and Falcon have all their remaining staff on three day week. There are now about 200 travel agency retail outlets cf 350 two years ago.
In a few weeks there'll be far less. In a year perhaps a 100.

The crazy thing is that most of my surviving collagues seem unaware of the consequences of the new VAT legislation. I'm not in ITAA but know they're in discussion (argument) with the VAT Intepretation people who still seem to be struggling to get their heads around the new law.

This new law will close many of us and thus will produce no extra revenue. Instead, there'll be more on the dole and it will cost the govnt; a common consequence of new or increased taxation.

As regards that Greek villa- funny you said that; I am presently trying to sell mine !! (no joke -on island of Samos -more a gite than a villa).

Anyway, Graham, you seem to know more than anyone I've talked with.
Many Thanks !
 

I have registered for the VAT course offered by the ITAA and am going to attend the seminar on the 22nd of October. There was one held in Dublin on the 6th October but the feedback I have received from some of the agents that attended is somewhat vague. I’ve heard mixed reviews like charging vat on part of a cruise that is in European waters and not charging vat on the part of the cruise outside Europe.
I am hoping to open a retail shop on a main street but due to this 'recession' the rent has come down which is a good thing for me starting out. I am also going to specialize in certain products and target certain profitable niche markets. I know there is doom and gloom everywhere you look and we Irish always seem look at the bad e.g. horrible weather then when the weather is nice it’s too hot. I believe that the numbers of agencies doors that have closed have left the door open for me and by god am I going to wk hard for them bookings.
I may be very naive but if I don’t try I will never know what could have been. I would love to hear more from oldnick and appreciate all your comments.
 
missc - I don't know whether you're crazy or plain brilliant. Every second agent is closing and you want to open. You deserve success !

I'm unsure why you'd want to open on a main street and yet specialise in niche markets, but you seem to have researched it and you may have found the answer that eludes the rest of us...

Have you done your homework re the barriers that the government put in place ?
e.g. 4% of your estimated turnover must be in the form of a bond. that is ,for every million you sell you must give a 40 grand bond (cash, bank-bond or similar) to the govnt. Plus they want to see a start up capital roughly equal to 4% of estimated t.o.
(I assume you've read aviationreg.ie and got the leaflets from them)

In any event, fitting out a shop, the first years rent and the cost of one other member of staff would cost between 70-100k depending where you are.
That's besides paying yourself and other running costs -from legal, accountant and other fees, ESB,phones, computers.

You must be willing to spend/risk 100.000 euros in that first year -if you reasonably sure you'll get it back in first year sales that'll be great. Otherwise ......

As regards the VAT issue -if you're not involved in sales to EU countries it's not so bad. Sales to EU destinations involve costs and paperwork.
The ITAA seminar this week was too short and everybody was a bit too stunned to ask the right questions -and thus the speakers may not have addressed the issues that concern agents - but hopefully the one on the 22 nd will have better prepared speakers and agents.

...so. how much will you pay me when I close my main street shop and come to work for you as an aged part-time consultant ??!!

Seriously, contact me if you need any info, advice -or just an old travel agents opinions.
 
Nick, i'm glad to have found your post. I am currently in the process of setting up a travel agent for a niche market and would really appreciate the chance to get some advice!
 
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