This is a common question I am asked at our Galway accountants branch. Do I have to register for VAT? I have created a very simple decision tree/ Flow chart to help you make this decision.
This diagram is not conclusive there may be other variables to consider before you start trading so its important to complete proper research or take professional advice.
If you have any questions or comments please do not hesitate to post them below or contact me on vat@DoMyBooks.ie
should i register for vat
Some points to note
1. The €37,500 threshold applies for persons supplying goods liable at the 13.5% or 21.5% rates which they have manufactured or produced from zero rated materials,
2. The €75,000 Threshold applies to persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to at 1. above)
Can you back register for VAT? i.e. if you needed to but equipment to get started but were not yet VAT registered can you then backdate the VAT registration and claim a refund?