What is the VAT threshold for services in a partnership?

Discussion in 'Askaboutbusiness' started by S.L.F, Nov 29, 2016.

  1. S.L.F

    S.L.F Guest

    I have been given the option of working with someone else but I am afraid that if we join forces as it were the total amount we'd make would push us over the threshold for VAT.

    Having to charge VAT for my services is something I have avoided like a plague because it is something that makes people look elsewhere for work to be carried out.

    I am talking to someone about the possibility of sharing our workload but if this means we are both over the threshold then neither of us would be willing to do it.

    So can anyone tell me what the threshold is for a partnership or is it still the same amount for a single person ie €37,500?
  2. Joe_90

    Joe_90 Frequent Poster

    Why? Are your customers private individuals or unregistered businesses?

    There are rules known as "anti fragmentation" that apply the same threshold to connected persons to stop people avoiding VAT registration.

    So if the partnership carries out a similar trade to you as a sole trader then the €37,500 applies to the combined turnover. So if you are doing €35,000 as a ST the partnership and ST would have to register.
  3. S.L.F

    S.L.F Guest

    That answers that then.

    I think I'll stay as a sole...sole trader.
  4. Purple

    Purple Frequent Poster

    Fair play to you S.L.F, many people would just fiddle their taxes in that situation.
  5. S.L.F

    S.L.F Guest

    It's not so bad working by myself.

    I don't earn an enormous amount but I really enjoy what I am doing.

    It'd be nice to have someone to work with but I am damned if I will annoy my customers by having to change them VAT at 13.5%