Invoice from Sole Trader

hubert1946

Hi All

A sole trader supplier invoices my company and he is not VAT registered and I suspect that he doesn't declare the income. What are the risks:
a) for me to pay him and
b) for him not to declare the income.
The amount is relatively small, just under 1000€. Is it legal? Will this fly under the radar, so to speak?


Thanks in advance.

Hubert.

CIARAN_BOYLE

There are a lot of sole traders who would be under the threshold for VAT registration

vertico

I think you have to clear the payment with revenue first

dbran

Hi

It does not matter to you whether or not the supplier is declaring the income as that is a matter which is between them and the revenue.

You just pay the amount owed and that is it, you do not have to get clearance from the revenue.

Regards

dbran

BailMeOut

see http://www.revenue.ie/en/tax/vat/guide/registration.html#section2

For goods threshold for registration is €75k and €37,500 for services per calendar year.

drunkmonkey

vertico wrote: »

I think you have to clear the payment with revenue first

I don't get this, is there any ever occasion where you have to tell the revenue your paying somone?

vertico

drunkmonkey wrote: »

I don't get this, is there any ever occasion where you have to tell the revenue your paying somone?

I do direct labour sometimes for a company and when I invoice him, he logs onto revenue and clears the payment 1st. If was behind on my taxes( which I'm not) there's an option to hold a % of the payment to go to revenue.

dbran

vertico wrote: »

I do direct labour sometimes for a company and when I invoice him, he logs onto revenue and clears the payment 1st. If was behind on my taxes( which I'm not) there's an option to hold a % of the payment to go to revenue.

Hi

This is RCT, which is a system that operates in the construction, forestry and meat processing industry.

It may or may not be applicable to the OP. Depends of what is being invoiced.

dbran

vertico

dbran wrote: »

Hi

This is RCT, which is a system that operates in the construction, forestry and meat processing industry.

It may or may not be applicable to the OP. Depends of what is being invoiced.

dbran

True never thought about what industry

jjjd

hubert1946 wrote: »

Hi All

A sole trader supplier invoices my company and he is not VAT registered and I suspect that he doesn't declare the income. What are the risks:
a) for me to pay him and
b) for him not to declare the income.
The amount is relatively small, just under 1000€. Is it legal? Will this fly under the radar, so to speak?


Thanks in advance.

Hubert.

No harm in asking him for a tax clearance certificate. Common enough practice to only engage suppliers who are tax compliant. It's our company policy.