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VAT rate on glasses (spectacles)

  • 23-10-2014 08:25PM
    #1
    optician2
    Registered Users, Registered Users 2 Posts: 4 ✭


    I would be grateful if someone could verify the rules on VAT rates on spectacles

    revenue.ie/en/practitioner/ebrief/archive/2007/no-372007.html

    Just a brief overview.
    An eye exam is considered a service and is exempt from VAT.
    Dispensing glasses is the act of fitting glasses on customers, including measurements, adjustments etc

    My understanding from the above link is that a pair of glasses costing €200 to the customer can have the costs broken down to €100 dispensing fee and €100 for the glasses.
    The dispensing fee part would be exempt from VAT and the glasses part would have the full 23% VAT rate applied giving an effective overall rate of 11.5% on the €200.

    Is my intepretation correct?
    Rang the VAT office to verify today and was told that the full rate of 23% should apply to the €200 in this example but I was not convinced that he was confident about what he was saying.

    Any help on this would be much appreciated.


Comments

  • #2
    optician2
    Registered Users, Registered Users 2 Posts: 4 ✭optician2


    Any ideas?


  • #3
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    I'd be with you €100 exempt €100 @ 23%.


  • #4
    optician2
    Registered Users, Registered Users 2 Posts: 4 ✭optician2


    Alan Shore wrote: »
    I'd be with you €100 exempt €100 @ 23%.

    Thanks Alan.


  • #5
    optician2
    Registered Users, Registered Users 2 Posts: 4 ✭optician2


    Called a different revenue office that agreed that
    half the value is seen as a dispensing fee and would be exempt.
    However he was just reading the link I have in my op and using that as his reference. He had never heard of it before.
    Now I have gotten two opposing pieces of advice from two different vat offices.

    Saw this link today that seems to suggest that they were looking to end this loophole.
    Independent.ie/business/irish/opticians-50m-is-one-in-the-eye-for-taxman-26360326.html

    what's the best place to get a definite answer?


  • #6
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,162 ✭✭✭relax carry on


    optician2 wrote: »
    Called a different revenue office that agreed that
    half the value is seen as a dispensing fee and would be exempt.
    However he was just reading the link I have in my op and using that as his reference. He had never heard of it before.
    Now I have gotten two opposing pieces of advice from two different vat offices.

    Saw this link today that seems to suggest that they were looking to end this loophole.
    Independent.ie/business/irish/opticians-50m-is-one-in-the-eye-for-taxman-26360326.html

    what's the best place to get a definite answer?

    Write to your local vat section asking for a determination in writing confirmed by the Vat interpretation section.


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  • #7
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    This issue has been going on for years. A number of years around 2009 or 2010 revenue paid back VAT due to a change from fully taxable to 50% taxable 50% exempt.

    http://www.revenue.ie/en/practitioner/tax-briefing/archive/65/tb12.htm

    I'm not aware of a change.


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