Understanding VAT

[IWCC]

Hi guys,

I am getting to the point now where I am going over the threshold so will need to register for VAT but just can’t get my ahead around it fully and have searched the internet to no findings.

what I wonder is, I know here in Ireland VAT is 13.5% on services. So I am wondering is this charged on every earning before expenses, wages etc?

So let’s say I take in €100,000 over a year, I pay €30,000 wages, €15,0000 on business expenses and the €55,000 left is my wage, would I also have a €13,500 VAT bill because of 13.5% on the €100,000 take in or would it be 13.5% on my €55,000 earnings?

 

[ched999uk]

In the UK Vat is charged to the customer at 20%. So as a business you collect the 20% deduct any Vat you have paid out (fuel, equipment etc) and give the Gov the remaining. Profit is completely irrelevant!!

So in simple terms if you were going to charge a customer £100 but now you are Vat registered you should charge £100 +vat so in your case £113.50. You do that on every job you do. So at the end of the month say you have charged £2000 +Vat (£2270). £270 being the Vat you collected on behalf of the Gov. Say you spent £113.50 inc Vat on advertising, so the Vat element is £13.50 (assuming it's a service) so you have to give Gov £270 -£13.50 = £256.5. 

I don't know if you have to pay your Vat monthly, quarterly or what.

Just to make it clean I am not an accountant and I don't know Vat laws in Ireland but hope the above gives you an idea.

 

[Pjj]

Hi guys,

I am getting to the point now where I am going over the threshold so will need to register for VAT but just can’t get my ahead around it fully and have searched the internet to no findings.

what I wonder is, I know here in Ireland VAT is 13.5% on services. So I am wondering is this charged on every earning before expenses, wages etc?

So let’s say I take in €100,000 over a year, I pay €30,000 wages, €15,0000 on business expenses and the €55,000 left is my wage, would I also have a €13,500 VAT bill because of 13.5% on the €100,000 take in or would it be 13.5% on my €55,000 earnings?

Probably best to speak to an accountant rather than a group of window cleaners who don’t know or understand the law in Ireland that way you will be getting sound advice 

 

[scottish cleaning service]

Probably best to speak to an accountant rather than a group of window cleaners who don’t know or understand the law in Ireland that way you will be getting sound advice 

Aye, but I heard you have to pay Vat return every 3 months. Not sure if that's right but I know they are very strict and can turn up if you don't pay. ?

 

[Pjj]

Aye, but I heard you have to pay Vat return every 3 months. Not sure if that's right but I know they are very strict and can turn up if you don't pay. ?

I have no idear what the law is in Ireland , it might be the same as hear or it might not so it’s safer it get professional advice ie accountant 

 

[scottish cleaning service]

I have no idear what the law is in Ireland , it might be the same as hear or it might not so it’s safer it get professional advice ie accountant 

Think the EU side is 13.5% Vat. This was set because they tried to get all the big Tech companies to move there and save money. They will move it to 15% after all the countries voted for it earlier this year. Its squeaky bum time because many of the Tech companies are now heading for London to build their HQ,s and will dessert Dublin no matter the Vat or Corporation Tax Rate because they don't pay much to begin with.