annual turnover and vat return

blackgold>>

My turnover is not above 20 grand and i keep getting the bi monthly forms.
Do i need to fill them out or what?
Thanks alot.

aidan.connolly

Hi,

Did you elect to register for Vat ? You are not normally sent the forms unless you have registered for Vat

Regards

Aidan

blackgold>>

Yes i registered for vat just incase.
I did it under my own name .
Thanks

aidan.connolly

If you elected to register for vat, then you are obliged to charge Vat on goods and services you provide even if your turnover is only 20K . You are also allowed recover vat on all you business related purchases ( excluding the usual exceptions e.g. Petrol, food/entertainment, car hire etc ) .

You can deregister for vat, but if you have been in a refund situation, the tax authorities may try and take back some of the vat they have refunded to you.

I have heard of some small businesses been able to apply for a yearly or six monthly vat return. It might be worth looking into if you want to remain registered.

blackgold>>

Ok i understand so far.
So say i bought a computer part from a factory at €100.
I charge the customer €121 so now when I fill out my vat form what do I need to do exactly? Send them the 21 euro?

aidan.connolly

Hi

Example

You purchase a computer part for 80.00 plus vat 21% 16.80 Vat Total 96.80
You sell the part to a customer for 120.00 euro plus Vat 21% 25.20 vat Total 145.20.

Therefore Sales Vat : 25.20
Purchases Vat 16.80
Difference you pay to Revenue Commissioners 8.40

Vat Form:

Box T1 : 25.20
Box T2: 16.80
Box T3: 8.40

If you have other purchase vat e.g. vat on mobile phone etc this is also deductible.


Is this any easier to understand ?

Legend100

I dont know what industry you are in exactly but it sounds like you would be better off deregistering for vat unless you expect your turnover to go over the goods threshold, dunno off the top of my head but think its somewherre in and around 70k.