VAT and the like

Time Magazine

Always wondered about this, is it only registered companies that have to pay VAT? If I'm selling an old TV in the Buy and Sell or on Boards, should I add 21% onto my price?

As far as I know, VAT means tax on the price you add to a good, i.e. value added. So what about if I collected Irish Punt coins prior to EMU, let's say worth €20 in terms of exchange rate, and sold them for €50 - would I be technically dodging tax? What about gifts that were hand-made and then given to me? What about my granddad's 1916 IRA medals, not that we'd ever sell them?

Cad é an scéal?

dermot_sheehan

You only have to register for VAT if your yearly sales breach the threshold limit, which is €27,500 for services and €55,000 for goods I believe. If you're not registered for VAT you do not add VAT on to the price.

Regarding the coins it's an interesting example. As legal tender punt coins were exempt from VAT until June 2002, after which they ceased to be legal tender. Again however the €55,000 threshold is there.

With regard to income tax, if you buy and sell in the course of trade then you are liable to income tax under schedule D case (1) of the tax code. If you do it only occasionaly you are instead liable for capital gains tax. For a once off transaction, it would come under the CGT exemption and revenue would be surpised if it was reported.

Time Magazine

Cheers Gabhain!