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VAT on Computer Training / Courses

  • 10-01-2008 1:00pm
    #1
    newbusiness
    Closed Accounts Posts: 102 ✭✭


    Hi folks,

    as you can tell from my user name I'm starting a new business.

    To cut to the chase - despite the major advantages of registering for VAT in terms of reclaiming and attractiveness to other businesses most of my clients will be domestic users.

    This put me at a disadvantage as I will have to charge them VAT and consequently be more expensive than Jonny Nixer down the road.

    HOWEVER - I was perusing revenue.ie today and happened across this http://www.revenue.ie/index.htm?/services/tax_info/vatrate/vatrate.htm
    it seems to suggest that VAT on both computer training and computer courses is 0. ie they are exempt.

    This would be perfect for me as I can charge clients VAT on hardware and other services but for the vast majority of clients who just want to know how to use the damn things I wouldn't.

    It can't be this perfect can it?


Comments

  • #2
    newbusiness
    Closed Accounts Posts: 102 ✭✭newbusiness


    Here's the entry...


    VAT Rates
    Training, Computer Courses
    Rate: Exempt
    Section/Sch:
    Para(ii)1st Sch
    Order:
    Remarks: Whether or not product related.
    Decision:
    Reference:


  • #3
    Sandy22
    Registered Users, Registered Users 2 Posts: 247 ✭✭Sandy22


    Exempt means you can't register; you don't charge VAT, nor can you reclaim it on inputs.

    Not the same as your service being zero-rated.

    If you are unsure, talk to the Revenue VAT people. You're entitled to have it explained, and they're paid to do it.


  • #4
    newbusiness
    Closed Accounts Posts: 102 ✭✭newbusiness


    I'll give Revenue a bell.

    What I'd be doing is half courses half PC repair/sales.
    Obviously I'd charge VAT on the PC repair and sales and could reclaim the VAT on the inputs for those.
    I wouldn't be looking to reclaim anything off the courses though.


  • #5
    newbusiness
    Closed Accounts Posts: 102 ✭✭newbusiness


    6.10 As stated in paragraph 6.6 a deduction of VAT is allowable on purchases for the purposes of a taxable business. If a person carries on both a taxable and exempt business, only the VAT appropriate to the taxable business is deductible. Where dual use inputs are used e.g. goods/services used for both a taxable and an exempt activity, a proportion of the VAT may be deducted on the basis of a method of apportionment between taxable and exempt supplies (See the Guide to Apportionment of Input Tax for further details).

    Seems to be a goer :)

    Might run in to issues with so called dual use inputs (ie a business vehicle) but other than that it seems great.

    Might take up cycling to the clients who only want classes!


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