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VAT registration. The advantage of group VAT registration is that there will be no need to account for VAT on goods and services supplied between group members. Such supplies are simply ignored for VAT purposes. It will also only be necessary to complete one VAT return for the whole group, so there should be a saving in administrative costs. However, the disadvantage is that various limits, such as those for the cash and annual accounting schemes see Part 2 of this article , will apply to the VAT group as a whole rather than on an individual company basis.
The basic tax point for goods is the date that they are made available to the customer. The basic tax point for services is the date that they are completed.
If an invoice is issued within 14 days of the basic tax point, the invoice date will usually replace that given above. If an invoice is issued or payment received before the basic tax point, then this becomes the actual tax point. With the supply of services there may be more than one tax point. Invoices are issued within 14 days of the basic tax point the date of completion , so the invoice date is the tax point for the balance of the contract price.
VAT is only chargeable on the net amount where a discount is offered for prompt payment, regardless of whether payment is made within the specified time for the discount to be received. Input VAT cannot be claimed in respect of goods or services that are not used for business purposes. An apportionment is made where goods or services are used partly for business purposes and partly for private purposes.
All of these sales were to non-VAT registered customers. These sales were all standard rated. Both motor cars were used for business and private mileage, but no fuel was provided for private mileage. These figures are inclusive of VAT where applicable. She paid for the new machinery on this date, but did not take delivery or receive an invoice until 6 April On 31 March Gwen wrote off impairment losses in respect of three invoices that were due for payment on 15 August , 15 September and 15 October respectively.
Input VAT would not have been recovered in respect of the motor car sold as it was not used exclusively for business purposes. Therefore, output VAT is not due on the disposal. Similarly, input VAT cannot be recovered in respect of purchase of the new motor car. Input VAT cannot be claimed in respect of the materials taken by Gwen for her personal use since the goods are not used for business purposes.
Input VAT on business entertainment is not recoverable unless it relates to the cost of entertaining overseas customers. Gwen can recover the input VAT in respect of the new machinery purchased in the quarter ended 31 March because the actual tax point was the date that the machinery was paid for.
Relief for an impairment loss is not given until six months from the time that payment is due. When you save your YouTube cookies choice below, Revenue will save a cookie on your device to remember your choice.
This Revenue cookie is set as a session cookie and will be deleted once you close this browsing session. YouTube may set cookies directly according to YouTube's own cookies policy. The thresholds depend on your turnover in any continuous 12 month period.
The threshold for intra-Community distance sales of goods and cross-border telecommunications, broadcasting and electronic TBE services relies on your turnover in a calendar year. A person, while not established in the State, needs to register and account for VAT if that person supplies:. Your turnover figure may exceed the threshold limit.
However, you may not be required to register for VAT. For registration purposes, the turnover figure may be reduced by the amount of VAT paid on stock bought for re-sale. You should use this reduced turnover figure to see if you can register for VAT. This adjusted turnover figure is used only for the purposes of determining your turnover for registration for VAT.
There are pros and cons of voluntary VAT registration, and the decision to opt-in voluntarily very much comes down to your particular business, as well as your own personal preferences. The advantages of voluntary VAT registration for entrepreneurs and small businesses include:. You can reclaim some of the VAT on the goods and services purchased by your business.
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