VAT & Education services?

Wezzad

Any advice on VAT and education services?

Having done some research I have discovered educatioal services are VAT exempt? Am I correct in that?

Also can I claim back VAT on rent etc? I have failed to find conclusive answers on this.

Many thanks,

Wes

moggie4000

I have heard that schools and hospitals are VAT exempt. Couldn't be 100% sure though.

Gloomtastic!

I've invoiced loads of schools and included VAT. Never had an issue with payment.

Rulmeq

Wezzad wrote: »

Any advice on VAT and education services?

Having done some research I have discovered educatioal services are VAT exempt? Am I correct in that?

Also can I claim back VAT on rent etc? I have failed to find conclusive answers on this.

Many thanks,

Wes

Revenue.ie have a comprehensive VAT guide on their site: http://www.revenue.ie/en/tax/vat/leaflets/vatguide_2008.pdf

1.5 Non-taxableentities
State bodies (such as Government Departments, local authorities, health boards etc.), educational establishments (such as schools, universities, VECs etc.), public hospitals, charities, sports bodies and church bodies are, with some exceptions, not considered to be engaged in economic activities. They are not generally, therefore, obliged or entitled to register and account for VAT on income from supplies made by them and they must bear VAT on their purchases of goods and services.
VAT law provides that State bodies or any non-profit making body engaged in the provision of facili- ties for taking part in sporting activities may be required to register for VAT in certain circumstances. Third level educational establishments may be required to register for VAT in respect of certain

You can only claim VAT back where VAT is charged on an invoice, VAT is generally not applicable to rent, so you don't go making up your own VAT on it. However if the rent is for a property used for the business (i.e. it's not the rent for your own private house/apartment), then you can claim it back against your income tax as an expense at year end.

unklerosco

You are correct, Educational services are exempt from VAT (being exempt doesn't mean you don't have to pay it on purchases tho).. We run a Montessori and as such don't charge vat. And as such we can't claim vat back on any purchases etc. We also run an after school service which is registered for vat. The reason being is that we distribute educational products. We can claim vat back on items we sell, we cannot claim vat back on items we purchase for use in our classes as we don't charge vat on the classes.

It's a bit annoying that there isn't a lower vat rate for educational services as it cost a fortune to kit out a school/montessori/creche etc... But as the previous poster said you can write off the purchases against your tax.

Wezzad

Thanks for all the replys,

Much appreciated.

Wes

moggie4000

Gloomtastic! wrote: »

I've invoiced loads of schools and included VAT. Never had an issue with payment.

Out of interest, Was that for products or services?

Gloomtastic!

moggie4000 wrote: »

Out of interest, Was that for products or services?

Services.