Small business set up - vat questions

[Charly100]

Hi Everyone,

I've just joined this forum as I am currently setting up my own business in the hotel/travel industry and some help regarding VAT would be much appreciated!

I know I don't have to be VAT registered as I probably won't be earning up to the VAT threshold limit however most businesses that I will be dealing with will want a VAT invoice so I assume I will still have to charge and collect VAT therefore shouldn't I be registered?

Thank you!

 

[kevin.doran]

They will only want a VAT invoice if you're VAT registered, the two go hand in hand. If you're not VAT registered they'll still expect an invoice, it just won't show VAT.

 

[Charly100]

Thanks very much for this! Although can they still require me to send a VAT invoice?

 

[Bob]

No. You should make it clear to them that you are not VAT registered.
You haven't said exactly what you will be doing. There are times when it is beneficial to register for VAT voluntarily. If you have a competent accountant - and you probably should have - that ought be one of the options that they discuss with you