A few vat questions...

Sevenspeed

Hi,

1) When you send in the form to be vat registered, how long does it take to get registered and get a vat number? Like would April 1st be too early? Is it possible to specify the date to be registered?

2) On the VAT 3 form, section E1 and E2 ask for the value of goods sent to or received from other EU countries. Why is this important. I sell to Ireland, UK and some countries around Europe. Would be a lot of work to have to keep account of sales to other countries in EU.

3) How does buying and selling goods to other countries in the EU work? Do I charge vat to vat registered entities in other EU countries? Also if I buy from other EU countries will they deduct the vat for me, or do I just claim it back from the revenue. A lot of questions I know, but any help would be appreciated.

DoMyBooks

1. Normally two or three weeks.

2. The revenue record transactions in and out of the country. Your obliged to fill it in correctly. Your accounts pacakge should be able to give you the figures without too much difficulty and count yourself lucky you dont have to fill in intrastats. If your exporting to VAT registered traders in the EU you will also have to fill in Vies Statements so you will need this information in much greater detail for them too.

You must keep proper books of account anyway so im not sure why you think it will be a lot of work?

3. You dont charge VAT to VAT registered entities in the EU provided you have a record of their VAT number. (If they give you a dodgy VAT number you could be liable so you can verify their VAT number here)
http://ec.europa.eu/taxation_customs/vies/vieshome.do

If you buy from EU countries get them to deduct the VAT at source its a longer process to claim it back if you dont.

The above is my personal opinion please dont take it as professional tax advice.

Sevenspeed

Thanks for the advice.
I don't use an accounts package, just record everythin on spreadsheets.
The reason it would be a lot of work is that like a shopkeeper, I don't record every individual sale in my cashbook. Rather, I record them in batches every few days. Maybe it would be easier with an accounts package, as you could specify the vat rate to be applied - 21%, Exempt etc. so maybe I could pull the bi-monthly figures from this?

One other question: I sell all my goods at a vat inclusive price. So if I sell to a non-registered individual outside the EU, if they don't ask, can I still sell it to them at the same vat included price, and not withold any of the vat for the government here. In other words, keep the full amount for myself?

DoMyBooks

Its a lot easier with an accounts package to keep track of your VAT. Particularly in the situation where you might find an error and need to raise a credit note the accounts package will handle this well your spreadsheets may not.

If you sell it to a REGISTERED business in the EU and they give you their VAT number you don't have to charge them VAT. Non registered individual should be charged VAT.

Sevenspeed

"If you sell it to a REGISTERED business in the EU and they give you their VAT number you don't have to charge them VAT. Non registered individual should be charged VAT. "

But what if the individual is OUTSIDE the EU?

Stephen

Mr. Incognito

Outside the EU- No VAT mate- It's a European Tax. There is a guide to VAT in the stickies that should help you out on basic questions like that

MartMax

It might take sometime to register for a VAT number.

I've had few experience of late that the Revenue Commissioners would issue other tax but holding on the VAT while they do background checking and also reviewing the individual tax current tax affairs. If it's a company, proprietor directors' tax affairs might be looked into as well.

So simply, make sure that your tax affairs are up to date.

M.