Voluntary VAT registration

Many entrepreneurs ask whether they can become a VAT payer even if they have not reached the required turnover. Under Section 4(2), a person who does not meet the condition of reaching a turnover of €49,790 or more may also apply for voluntary VAT registration.

So even if an individual or a legal entity wants to become a VAT payer but has not reached the required turnover, they still have the option of applying for voluntary VAT registration.

WHAT DOCUMENTS SHOULD I PREPARE WHEN APPLYING FOR VOLUNTARY REGISTRATION?

The application for voluntary registration must be supported by documents that can demonstrate the company’s business activity or business intentions. If the tax office finds the documents you attached to the application insufficient, it will ask you to provide more.

Most often the tax office requests the following documents, or other documents the company has available that show it is carrying out, or intends to carry out, an economic activity:

• General ledger / monthly view
• Register/list of issued invoices
• Received and issued invoices / a few samples for inspection + proof of payment of the invoices – bank account statements

QUESTIONS THE REGISTRATION OFFICER MAY ASK:

1) What is located at the taxable entity’s registered office address? Does the taxable entity have a labelled letterbox? Does the taxable entity have premises at other addresses?

2) What is the taxable entity’s main business activity? If the taxable entity has a website, please provide it.

3) Who carries out the business activity?

4) Does the taxable entity have employees? If not, does it plan to hire any?

5) Does the taxable entity own tangible and intangible assets? If so, which ones?

6) Which countries are, or will be, the taxable entity’s business partners from?

7) Has the taxable entity received and issued invoices? If so, what is being invoiced? Have these invoices been paid? If so, how?

8) Has the taxable entity received orders, or concluded and signed contracts with customers or suppliers? If so, what is the subject of the contracts and orders?

I HAVE A NEWLY ESTABLISHED LIMITED LIABILITY COMPANY (S.R.O.) AND WANT TO APPLY FOR VOLUNTARY REGISTRATION – HOW DO I GO ABOUT IT?

If a business does not yet have any activity or has not yet started carrying it out, it should also prepare a business plan to go with its registration application, since it has to demonstrate its intention to carry out an economic activity.

In this case it is advisable to have the business plan drawn up professionally so that it contains everything it needs, such as basic information about the company, the company’s business activity, a financial plan and many other points.

Ideally, the business will also attach to the application contracts with business partners that prove the business activity is planned to be carried out.

MY REGISTRATION WAS REJECTED – WHAT NOW?

The tax office may also reject your voluntary VAT registration. The problem arises when the entity disagrees with the rejection. Unfortunately, a rejection of a registration application cannot be appealed. The rejection of a first registration can also be a reason to reject a repeat application for voluntary VAT registration.

We therefore recommend that, after a rejection, you ask the tax office for the withdrawal of your original registration application, so that you avoid unnecessary problems in the future.

OUR S.R.O. VAT REGISTRATION SERVICE INCLUDES

• Consultations with the company’s managing director before the application is submitted. The consultation includes getting thoroughly acquainted with the applicant’s planned business and the state of its preparations for doing business. Based on this information, we will propose a list of documents that the company will be able to submit and that will at the same time be sufficient for the tax office to approve the VAT registration application.
• Preparing the necessary documents and submitting the application to the tax office.
• Representing the client in person in the VAT registration process.