Tax Accountants Clondalkin, Tallaght, Lucan, Celbridge, Naas, Dublin

VAT Returns

Tax Accountant Clondalkin | Tallaght | Lucan | Naas | Celbridge | Dublin

VAT Returns and Registration Services

If you provide a service and your sales are in excess of €37,500 p.a. you must register for VAT. If you provide goods the VAT limit is €75,000 p.a. 

Advantages of registering fort for VAT

Business owners may want to register for VAT voluntarily. They should bear in mind – contrary to the Income Tax, VAT is not a business expense. Below are some advantages of registering for VAT before your turnover is in excess of the threshold:

Register for VAT early and avoid heavy financial penalties. You may not notice when your turnover exceeds the VAT registration threshold. You don’t have to worry about this if you register early.

Make your business deals easier. You will learn that a good deal of suppliers are unwilling to do business or give you the best rates because you are unable to generate a VAT invoice.  Having registered for VAT early you will be issued with a VAT registration number which in turn will help you deal with external businesses easier.

VAT Refunds. One of the biggest advantages of being VAT registered is the ability to claim VAT on services and goods purchased for the business. Since there are different rates of VAT on different products you might be in a VAT receivable position and get money back from the Revenue Commissioners in VAT refunds.

The implications

​The implications of VAT registrations are as follows:

​VAT must be charged on all invoice

VAT on business expenses (other than entertainment and motor expenses) can be reclaimed

Proper VAT records must be kept and VAT returns completed.

Do I need to register for VAT? 

There is an easy way to calculate whether a person is obliged to register for VAT. The turnover is reduced by the amount equivalent to VAT on purchase of inventory:

Annual stock purchased:                                                                                                               €63,000 (VAT incl.)

Annual turnover:                                                                                                                          €80,500 (VAT incl.)

Less VAT on purchases:

(VAT portion @ standard rate: €63,000-(€63,000 / 1.23) =€11,780.49)                                      (€11,780.49)

Net turnover:                                                                                                                                €68,719.51

Net of VAT turnover is below the €75,000 threshold. Therefore, there is no obligation to register for VAT.

Get in touch with us or get a free quote now! Our team will help you decide whether you are better off registering for VAT. We will also prepare your bi-monthly VAT returns atthe best price!