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Yeah, I don't know whether France has a similar exemption, but in the UK currently I do not have to track or even charge VAT until the company has £81k in reven
by adwf 12y ago
Yeah, I don't know whether France has a similar exemption, but in the UK currently I do not have to track or even charge VAT until the company has £81k in revenue. I don't even have to register for it. This is really handy for turning a side-project into a small company, as I can just try out various revenue streams without too much bureaucracy.
Once I hit £81k of course, I can probably afford to throw money at accountants to take care of it for me! But that critical first bootstrapping stage has become just that little bit more difficult. It's either block the rest of the EU, or get ready to do some paperwork. Or I guess I could become a zero-revenue startup! ;)
- thibaut_barrere 12y agoWe have a similar threshold (I believe it is when you reach 15k€ of VAT, to be verified). The bad thing is that I will already roughly reach the threshold because of my main income which is coming from consulting. So bootstrapping based on consulting is becoming a bit harder, paperwork-wise :P
- phillc73 12y agoYou need to take a view regarding the type of expenses your company will have too. I run a small, one man, UK Limited company and was for a time VAT registered. This is because when I first started the company I spent a few thousand Pounds on equipment. All the VAT I paid on this equipment was able to be offset against any VAT I collected through invoicing. For a while I was ahead and it helped my cash flow, even factoring in the accountancy bills each quarter (which weren't really all that much). I made this move on advice from my accountant, and at the appropriate time, when I was no longer "ahead" on VAT, I was advised to de-register for VAT. My revenues still aren't £81k.