VAT Registration Question on whats required???

Tomtata

Hi,

I am registered as a sole trader and I want to register for VAT as I'll be importing a lot of products from Germany - The 3 companies I’m dealing with will deduct the VAT so long as I’m registered.

I have downloaded Form TR1 from the revenue but I’m a little confused about what’s needed.

It states "An individual - complete parts A(1), A(3) and B, C, D and/or E as appropriate."

Part A(1) General - That’s fine

Part A(3) Business Details - That’s fine

Part B Registration for Income Tax (non-PAYE) - I leave this blank

Part D Registration as an Employer for PAYE / PRSI - Do I need to do this as I'll be the only worker???

My wife works full time and gets all my PAYE entitlements, will she lose this if I register. I will be well below the VAT & Income threshold for the first 12 months.

Sorry for the long post and thanks in advance.
Tom

dooloo

Firstly you do have to register for income tax if you are setting up a sole trader .

If you are the only person employed in this business, then yes, you do not have to register as an employer.

At the moment, I presume that your wife gets the increased cut-off point due to you being married and receives the married credit in addition to her PAYE credit. This should not change unless you request Revenue to do so.

Tomtata

Thanks for the info dooloo and your right she gets the increased cut-off and receives the married credit in addition to her PAYE credit.

One last question I will be buying products Ex VAT and selling Inc VAT - Is this VAT payable to the Revenue even tho im well below the threshold?

Thanks, Tom

dooloo

Yes, to purchase the products ex VAT, you must be registered for VAT in the first place. Once you're registered for VAT, you have to pay your VAT on sales over to Revenue less any deductible VAT on purchases.