VAT threshold query - physiotherapist & Yoga teacher

J Fitz

Hi

I have a question relating to the VAT registration threshold being self employed as a physiotherapist and yoga teacher.

Physiotherapy is vat exempt and yoga is not. So if the combined turnover goes above the 37,500 this year, do you have to register for VAT or is it only if the Yoga income goes above the €37,500. For example, if I take in €40k but it is €20k from physiotherapy and €20k from yoga, do I still need to register for VAT?

Also if I do register for VAT, can i only claim for the expenses related to the yoga part of the business?

Thanks

Calahonda52

Exempt has a very specific meaning in Tax:
No VAT crossover
https://www.revenue.ie/en/vat/what-is-vat/exemption-from-vat.aspx

IMO, you need two sets of accounts and the threshold only applies to the yoga

J Fitz

Thanks Calahonda52. That all makes sense. Cheers.

exaisle

Calahonda52 wrote: »

IMO, you need two sets of accounts and the threshold only applies to the yoga

Do you mean two sets of accounts as in a profilt and loss account for each, or do you mean just making sure that turnover from each income source is recorded correctly so he can prove that the yoga turnover is below the threshold? Two full sets of accounts seems overkill and a waste of time and money...