Simmers & Co

Topical Points Answer

Print this page


Should I register for VAT?

This question could mean two things: "Do I HAVE to register for VAT" or "Should I CHOOSE to register for VAT".

VAT is a tax collected and paid over to Customs and Excise by those who are VAT registered. If you are registered for VAT, part of your invoiced sales is VAT which you are collecting to pay, usually every quarter, to government. You may deduct the VAT you pay on your purchases, of qualifying goods, from the amount collected from your sales - the balance is then paid over.

Some type of businesses are not able to register for VAT, whether or not they exceed to registration limit. Your accountant or Customs and Excise can help you find out if you come into this category.

This could be an expensive exercise if you get it wrong so it could be worth your while to seek professional advice