Ballet Dancing - VAT Implications

BUNGLE007

Hi

I have set up a Ballet Dancing school.

I have not registered for VAT yet - but I believe its VAT Exempt.

What does this mean ?

Can I reclaim VAT on purchases ? I am currently been charged VAT on my rent.

Any help would be greatly appreciated.

Thanks

Legend100

yes it is vat exempt under the first schedule of the 1972 act. This means you cannot reclaim vat on ur purchases and have to suffer the vat cost unfortunately

Dixie Chick

If you are VAT EXEMPT you can fill in Form13A which is a VAT exemption appliction form. If this is approved by the revenue then you will recieve a cert which will show you to be vat exempt, its the VAT 13B form.

Then you can inform your supplier that you are vat exempt and provide them with the cert number of this form and they will invoice you without vat and then you DO NOT have to take the hit of the vat expense

nompere

In very broad terms, the VAT form 13A procedure applies to businesses that get most of their turnover from exports outside the EU, and allows them to receive zero-rated goods and services. A proprietor of a ballet school is not going to be in a position to to apply for this zero-rating.

For those interested in the detail of the procedure, here is a link to the revenue leaflet:

http://www.revenue.ie/en/tax/vat/leaflets/zero-rating.html

BUNGLE007

Many thanks for the replies - god VAT rules are a nightmare

Is there any point in me registering for VAT then ?

So basically I cannot reclaim any Input VAT suffered ?

Can I ask my landlord not to charge me VAT on the rent ?

And I am allowed not to charge VAT on my sales ?

Are these statements true

Mr. Incognito

okay- first off there is a guide to VAT in the stickies.

Being VAT exempt means that you do not charge VAT. You still pay it.

From the guide:

Exempt goods and services consist principally of financial, medical and educational activities as well as admissions to and promo... Exemption from VAT means that the persons engaged in the exempt activitives are not liable for VAT on their receipts and are not entitled to a credit or deduction for VAT borne on their purchases. It is emphasised that exempt persons are not entitled to receive taxable goods or services free of VAT, simply because they are exempt from charging VAT on their supplies. The position of a business with both exempt and taxable activities is explained in paragraph 10.10. 16.6

If you are VAT EXEMPT you can fill in Form13A which is a VAT exemption appliction form. If this is approved by the revenue then you will recieve a cert which will show you to be vat exempt, its the VAT 13B form.

Then you can inform your supplier that you are vat exempt and provide them with the cert number of this form and they will invoice you without vat and then you DO NOT have to take the hit of the vat expense

This is not applicable. Ignore it. You are not a VAT exempt person. You are engaged in a VAT exempt activity. HUGE difference.