Is VAT applied to the license fee???

lefthooker

Does anybody have a definitive answer to the above question?

Did a search but couldn’t find any info.

Cass

I don't know, first of all, but i'd imagine so.

Any particular reason?

lefthooker

Cass wrote: »

I don't know, first of all, but i'd imagine so.

Any particular reason?

Just to ascertain if the license fee is subject to VAT and if it’s reclaim-able

garrettod

Hi,

I really don't think Vat is applicable.

If Vat was applicable, wouldn't it be stated somewhere on the grant?

Also, if you were to "deduct Vat" from the €80, it works out at €66.12, which seems a very odd amount to charge for a licence fee.

Cass

I'm not up on VAT and such so excuse the dumb questions or statements. Perhaps its one of the VAT exempt items. Or maybe its not VAT-able at all.

There is a four year limit on VAT claims so an average of 6 licenses at €16 reclaimable VAT on each is €96 and assume some have to be renewed twice within that four years (three year licensing) we'll call it an even 3 extra licenses, so €48, and a grand total of €144 over the four years. Even if you have all 6 twice in the four years its €192.

Here come the dumb questions.

Can anyone reclaim VAT or only businesses/VAT registered? If its businesses only then i'd imagine most cannot do it. Plus if you only have a couple of licenses (hence guns) then you could be talking about an amount of, approx., €64 over four years. At most.

Snake_Doctor

You have to be VAT registered to clam VAT, so either sole trader or LTD company normally. Even at that, the VAT needs to be clearly stated on the Invoice, and wholly and exclusively for company purposes. So unless you are registered for vermin control, ect and there is a clear VAT invoice or receipt, not a hope!

clivej

Ah the joy of having a vat number. Get all the VAT back on ur firearms, ammo, club membership, travel cost incurred going to the range, competitions, etc.
Vermin control need be only a part of ur business. Just the farmers letter stating ur hired to control vermin on the land is all that's needed.
But please remember any income made from such work is taxable and must be declared. This would include the sale of rabbits, deer, and fox pelts.

lefthooker

Snake_Doctor wrote: »

You have to be VAT registered to clam VAT, so either sole trader or LTD company normally. Even at that, the VAT needs to be clearly stated on the Invoice, and wholly and exclusively for company purposes. So unless you are registered for vermin control, ect and there is a clear VAT invoice or receipt, not a hope!

clivej wrote: »

Ah the joy of having a vat number. Get all the VAT back on ur firearms, ammo, club membership, travel cost incurred going to the range, competitions, etc.
Vermin control need be only a part of ur business. Just the farmers letter stating ur hired to control vermin on the land is all that's needed.
But please remember any income made from such work is taxable and must be declared. This would include the sale of rabbits, deer, and fox pelts.

I’m a VAT registered sole trader and use various firearms for fur and feather control on our farm. Pest and vermin control were the reasons given for each application. There is no additional income generated, it’s purely maintenance and my own satisfaction.

I was doing another round of VAT returns and noticed I had a few receipts from paying renewals and got to think about the VAT status of the fee, be it 0% or 21%.

I appreciate the conjecture and opinion but I don’t think we have a definitive answer yet.

clivej

lefthooker wrote: »

I’m a VAT registered sole trader and use various firearms for fur and feather control on our farm. Pest and vermin control were the reasons given for each application. There is no additional income generated, it’s purely maintenance and my own satisfaction.

I was doing another round of VAT returns and noticed I had a few receipts from paying renewals and got to think about the VAT status of the fee, be it 0% or 21%.

I appreciate the conjecture and opinion but I don’t think we have a definitive answer yet.

IMO >>>> Then you should have or can claim VAT back the same as any tool, machine etc you buy for use on your farm.

Cass

lefthooker wrote: »

I appreciate the conjecture and opinion but I don’t think we have a definitive answer yet.

You don't and i believe you won't, at least not on here unless someone that works in revenue wants to pipe in.

Have you tried contacting them to see if you can get a straight answer?

garrettod

clivej wrote: »

IMO >>>> Then you should have or can claim VAT back the same as any tool, machine etc you buy for use on your farm.

Aren't you now referring to Vat charged on firearms, rather than on licences though?


....

My thinking is that:

- if the firearm is used "exclusively" for work purposes, then it's a fixed asset. It's depreciated accordingly, each year.

- ammunition, repairs, training courses, safety equipment, and licences, are all related expenses, so the cost can be offset against related income.

I'm stressing the word "exclusively" (above), given I can see a potential challenge, if there's even the slightest hint of use, for non work purposes.

garrettod

Hi Lefthooker,

As a follow up....

Stick a post up in the Accountancy and / or Tax sub forums, here on Boards, asking the question.

Snake_Doctor

In my dealings with Revenue, you won't get a straight answer, that is until you are audited, then they will be crystal clear. What I can say, is that they are extremely sensitive when it comes to VAT, I could potentially do what is outlined above, but I wouldn't touch it, unless there was an actual income PLUS VAT attributed to the work generated, then any item used for said work would be VAT applicable. I don't think many Farmers would appreciate an invoice plus VAT. If you didn't charge VAT, you owe them said VAT anyway and they will look for it.

The OP to be fair has a good case as it's directly linked to his main occupation.

lefthooker

Thanks for all your input lads. I’ve put an enquiry into the Revenue and if I get a response I’ll put it up for those interested

lefthooker

Had a phone call from a helpful chap on the local Revenue office.
The license fee is exempt from VAT.
Case closed.