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Question about registering for VAT

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  • 07-08-2018 1:51am
    #1
    LawlessBoy
    Registered Users Posts: 1,001 ✭✭✭


    Hi,

    Im currently in the middle of designing an e-commerce website. Some wholesales suppliers I have been in contact with in Ireland and the UK are asking for a registered VAT numbers before I can set up an account with them. My understanding is that before I need to register for VAT I would have to have a turnover on the sale of goods over €75k per annum. Is there a way around this? Can I register for VAT even if the projected sales for the first year fall below this?

    I will be set up as a sole trader and not a LTD company if this makes any difference? Can I just give my PPSN number? They said the vat number would be VIES checked so assuming this is not an option.

    I have tried to look around online before coming here asking for advice but most searches have turned up dry or leading to companies offering to set up the business / register you for VAT.

    Sorry for the late post hoping to have some replies which I can look into after work tomorrow.

    Thanks in advance.


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    #2
    martyoo
    Closed Accounts Posts: 872 ✭✭✭martyoo


    My understanding is that before I need to register for VAT I would have to have a turnover on the sale of goods over €75k per annum. Is there a way around this? Can I register for VAT even if the projected sales for the first year fall below this?

    Yes you can. As far as I know if you are a sole trader your PPS number will be your VAT number once you are registered.


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    #3
    LawlessBoy
    Registered Users Posts: 1,001 ✭✭✭LawlessBoy


    martyoo wrote: »
    Yes you can. As far as I know if you are a sole trader your PPS number will be your VAT number once you are registered.

    Thanks for the reply martyoo.

    Would anyone here be able to offer advice on any tax implications I might run into while being registered as a sole trader while still being employed or able to point me in the right direction for this information. I am also a full time student if this would makr any difference.


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    #4
    Rulmeq
    Registered Users Posts: 1,083 ✭✭✭Rulmeq


    LawlessBoy wrote: »
    Can I just give my PPSN number? They said the vat number would be VIES checked so assuming this is not an option.


    You can check it yourself here: http://ec.europa.eu/taxation_customs/vies/


    But if you haven't registered for VAT, then it won't work.


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    #5
    LawlessBoy
    Registered Users Posts: 1,001 ✭✭✭LawlessBoy


    Rulmeq wrote: »
    You can check it yourself here: http://ec.europa.eu/taxation_customs/vies/


    But if you haven't registered for VAT, then it won't work.

    Yes i seen that myself yesterday. Assuming thats what they would use to check it out and your right a ppsn wont show unless it actually is registered for VAT


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    #6
    heretothere
    Registered Users Posts: 635 ✭✭✭heretothere


    If you are a sole trader your VAT no will be your PPS no, but it would have to be registered. Being a student makes no difference.

    Main implication will that the cost of your product will increase as you will need to charge VAT. So instead of your product costing €100 it will now cost €123. Same amount into your pocket but you might lose customers.

    Also you will need to file bi-monthly VAT returns.


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    #7
    RUDOLF289
    Registered Users Posts: 794 ✭✭✭RUDOLF289


    LawlessBoy wrote: »
    Hi,

    Im currently in the middle of designing an e-commerce website. Some wholesales suppliers I have been in contact with in Ireland and the UK are asking for a registered VAT numbers before I can set up an account with them. My understanding is that before I need to register for VAT I would have to have a turnover on the sale of goods over €75k per annum. Is there a way around this? Can I register for VAT even if the projected sales for the first year fall below this?

    I will be set up as a sole trader and not a LTD company if this makes any difference? Can I just give my PPSN number? They said the vat number would be VIES checked so assuming this is not an option.

    I have tried to look around online before coming here asking for advice but most searches have turned up dry or leading to companies offering to set up the business / register you for VAT.

    Sorry for the late post hoping to have some replies which I can look into after work tomorrow.

    Thanks in advance.

    Good afternoon,

    You only have an obligation to register if you exceed 75K turnover in a 12 month period. If your turnover is less than 75K you can opt to register for VAT voluntary. You can do that as a sole trader and get a VAT number (possibly linked to your PPS nr - not 100% sure on that).

    If you are not registered for VAT your suppliers are going to have to charge you either 23% VAT (if they supply you from Ireland) or the local VAT rate applicable in the EU country of supply. In neither case will you be able to reclaim the VAT, so that needs to be added to your cost base (which may make your product uncompetitive).

    My recommendation would be to have a word with an accountant and figure out what makes the most sence. Especially if you are selling products into other EU countries, there are VAT implications. Also, if you are selling to VAT registered entities, they would be looking for an invoice showing VAT details (and if selling in Ireland they would expect to be charged 23% VAT which they would claim back through their periodic VAT return).

    Hope this helps

    Cheers,
    Rudolf289


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