VAT on Livery Services

HcksawJimDuggan

As per revenue VAT on livery is at the reduced rate of 13.5%

http://www.revenue.ie/en/tax/vat/rates/decision-detail-04988.jsp

Could someone confirm if the 2/3d's rule applies to livery when recharges on top of the livery fee such as veterinary, schooling, clipping, shoeing etc. are taken into account?

dbran

The 2/3rds rule refers to a supply of goods being more then 2/3rds of the vat exclusive price supplied to the customer. I understand livery of horses is a service so the 2/3rds rule cannot apply.

It does not apply to agricultural goods either.

dbran

HcksawJimDuggan

Thanks dbran,

Would the entire service be then chargeable to VAT at 13.5% or should expenses incurred on the horses as part of the service be recharged at their respective rates i.e. transport of horses at 23%, farrier at 23%

dbran

Hi Jim

I would suspect that they would each be termed as multiple supplies as they would each be a service in their own right. In that case the VAT rate would be the rate applicable to each service as you described and not 13.5%. If a service is complementary to the main service ie it would not usually be supplied on its own, then it may be either 13.5% or it may be 23% depending on which is the main service supplied.

I am not a "horsey person" so thats the best I do.

dbran