I’d agree with Simmo on those facts – but come to the opposite conclusion.
:tongue:
I’ll explain.
Down here we have GST (which is just like your VAT) set at 12.5%
These days I bill EXACTLY ZERO domestic companies for my services.
But I still spend between $30K to $40K locally per annum.
So by registering for GST – all business purchases are eligable for a complete refund of GST paid. That’s going to be about $5K back in my hand.
:santa2:
Basically by opting out – you’re agreeing to pay a VAT tax for domestic purchases that YOUR COMPANY DOES NOT NEED TO PAY.
Think about all your local spends:
– PC’s and telco equipment
– Internet charges
– Utility bills
– Accountants fees
– Car Lease
– Office Rent
As with all tax issues it is best to consult local professionals – but I’ll be amazed if they don’t say IMMEDIATELY SIGN UP!
:hattip: