How to reclaim VAT on your Business Start-up expenses?
VAT Refund can be a welcome cash inflow for start-up companies which incurred considerable expenditure to set up their business. The most common types of expenses are purchase of plant, equipment, cars, initial consulting costs and legal costs, advertising and marketing, cost of stock for resale or manufacture, etc.
Who can apply for VAT Refund?
If you have set up a business but have yet to supply taxable goods or services, you may reclaim VAT on your start-up costs. However, to do so you are required to register for VAT. This will enable you to obtain credit for VAT on purchases made before trading begins.
When to register for VAT?
It is vital to consider the timescale for the VAT registration very carefully as in general, Revenue will not backdate your VAT registration and you can only elect to register for VAT from a current date. However, Revenue will make an allowance and register your company within a current VAT reporting period which run as follows: January-February, March-April, etc.
For example, if your company was registered with the CRO with a date 1 January 2020 and you apply for the VAT registration on the 5th of March, your company can only be registered for VAT from the 1st of March. You will not be able to reclaim expenses incurred while the company was not registered for VAT, i.e. in January and February.
However, if your company was registered with the CRO with a date 1 January 2020 and you apply for your VAT number in January or February, you will be able to get a VAT refund for expenses made during those 2 months.
If you require any help with your Annual Return B1, please leave your email address, we will be happy to assist.
B1 Annual Return
from €85
Included is:
- CRO Fixed Fee €20
- Submission of B1 Form in CORE
- Audit Exemption claim
- Monitoring in CORE till successful registration by CRO
You may also find useful:
- Corporation Tax Return - from €120
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