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Voluntary VAT registration, can I do it?

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  • 15-02-2017 1:59pm
    #1
    Registered Users Posts: 5


    I've got a small startup incorporated in Ireland with an address, corporate tax number, Irish phone number, etc., but I'm working remotely from the EU for the time being since all of my sales are distance sales and there's no need for me to be in Ireland for now (moving over is costly, and I know not if I'll be successful in this business startup of mine yet to justify the move, and I won't be dealing with customers face-to-face anyway).
    The thing is, most of my customers are businesses all over the EU. In the previous company I've worked for (same field), we've had two 16000EUR sales to the UK in a week, sometimes a few 800EUR sales in France, a few 1000EUR sales in Poland, same for Ireland, but in another quarter, things change completely and we get some other completely different sales stats, etc. And all these companies ask me for my VAT number. Furthermore, I will most likely exceed the VAT registration turnover thresholds anyway within the year.
    I've spoken briefly with an accountant I know, and I've been told that I'll most likely be denied VAT registration because I do plenty of business outside of Ireland, and because I'm not present in Ireland. Is this true?
    Also, I've gained the status of "exclusive distributor" from certain companies in the EU for the Irish market, but I have NO IDEA how much these products will sell. At all. Maybe 1000EUR of turnover a year, maybe 100x more. If I claim on the TR2 form that I'll be selling e.g. 80000EUR worth of equipment and parts a year in Ireland, and I don't meet that quota, what's going to happen?
    I've been incorporated for only a month, but I want to nip this in the bud and settle things properly. Is there an adviser your could recommend I could talk to by phone/skype who charges by the hour or something? What are your experiences with VAT registration in situations like these?


Comments

  • Registered Users Posts: 28,193 ✭✭✭✭drunkmonkey


    You'd be best off ring the revenue and get the advice from the horses mouth.

    Are you living in Ireland, your going to have to pay vat & tax somewhere.


  • Registered Users Posts: 5 HeadToCeiling


    Does Revenue actually deal with clueless people like me? I'm all over the place, as you can plainly see. I'm afraid I'll ask something I'm not supposed to or say something that will not be taken well which may hurt my chances of getting registered.
    I'm not living in Ireland, but when I do eventually take some money out for pay, I will have to pay some Irish taxes, and the rest will go to the country I reside in (double taxation treaty is in effect here). Corporate tax obviously applies, nevertheless.

    If I get VAT registered and sell to private individuals, I'll be charging Irish VAT up to a legal limit which is set by the respective countries I'm selling to.


  • Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    Might be best to move this to taxation Mods.

    Ring the VAT Helpline revenue have set up. If your income is exceeding 80k per year, you will almost certainly be obliged to register for VAT

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


  • Registered Users Posts: 5 HeadToCeiling


    Is there an universal number I should call?
    Because the only numbers I've found relating to VAT registrations are regional (I'll be needing the one for Cork).


  • Registered Users Posts: 1,521 ✭✭✭Joseph


    Kind of sounds like you need to talk to an accountant here in Ireland


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  • Registered Users Posts: 5 HeadToCeiling


    Yeah, I've talked to one about this during a short consultation... The answer was pretty much "yeah, maybe... or maybe not, it's complicated, no guarantee..." etc. Bleh...


  • Registered Users Posts: 1,521 ✭✭✭Joseph


    Get a proper consultation then :-) Worth it


  • Registered Users Posts: 5 HeadToCeiling


    Yeah, this is why I've asked for a recommendation in my first post.

    Paying 200EUR for someone to fill out a simple TR2 form for me and sent it to Revenue with a big "maybe it'll work" is something I don't wanna do. I want a bit of an explanation of what's my best course of action. I'll just probably ring Revenue and see if I'll get yelled at ;)


  • Registered Users Posts: 402 ✭✭Lockedout2


    On the basis of the information provided you have no connection to Ireland other than having an Irish company.

    You need to consider if you have VAT and Corporation Tax implication as your permanent establishment is possibly in the other EU state.

    If you are electing to register for VAT in Ireland for the supply of zero rates services to other EU countries how much VAT are you going to reclaim in reality?

    Is it worth your while?


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