View Full Version : Register for VAT.
04-23-2008, 03:12 PM
Hi I am from Ireland and am starting a new computer repair shop on June 1st. I dont know whether to register for VAT or not. I am setup as a sole trader at the moment and would like to stay that way for now. Is it possible to register for VAT when you are a sole trader? I was talking to an acountant a while back and she told me not to register for VAT. I hate all this accountant stuff that goes with starting up a business:confused:
If anyone can give me some advice or let me know what way they are setup, it would be a great help. Thanks
04-23-2008, 04:27 PM
My advice is don't register for VAT.
I had a business a few years ago, although it wasn't in IT.
If you register you will have to charge vat on all billls thus making your prices not so competitive. It's a lot of work filing vat returns. Don't know what the threshold is now but 10 years ago it was £50,000
I wouldn't imagine you are going to turnover in excess of £1000 per week in your first year so hang fire just now and you can do it later if need be.
As a sole trader you can register for vat when it looks like your anual turnover is going to exceedt the annual vat threshold.
Not an accountant by the way but thats my advice.
04-23-2008, 05:17 PM
Thanks for the advice David. I think its 70,000 euro. If i dont register for vat and do a job for a small business can they still claim vat back for computer repairs??
nope, they can only claim back if you charge them VAT whether it's parts or labour.
which you won't be able to (legally) do, unless you're VAT registered
Because you are thinking of a shop I think it would be a good step to VAT register
have you spoke to a accountant? they would proberbly give the advice for free! :)
04-23-2008, 10:24 PM
Thanks lads that has helped alot. I have a friend of a friend who is an accountant I'll have a chat with her too. Thanks again..
04-24-2008, 02:08 PM
Hey I'm from Ireland too, the threshold at which you must register for VAT is €35,000 if you're in the service industry (as opposed to selling goods when it's €70,000). I registered anyway even though I don't expect to reach that mark in my first year. It's probably best to go with your accountants advice though.
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