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FREELANCE INFORMATION REQUIRED
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Re lower rate of vat:
2.3 Paragraph (xxii) (a), (b) and (c) cover the supply on a commissioned basis of photographs, mounted ( including in albums) or unmounted, but unframed. An example of this is commissioned wedding photographs supplied in an album. Also classified here are slides, negatives and cine and video films supplied on the same basis. Supplies of photocopies are excluded as are digitized images supplied on disc or downline.
So if you are commissioned to photograph an event for example, you must charge 21% vat if supplying your client with images digital images on disc or downline via your PC.
but are you to charge 21% on the fee for the supply of images while the service part only attracts 13.5%?
No I’m pretty sure its 21% on the lot.
The only time you charge 13.5 % is when supplying prints from negatives, slides or digital files which have been supplied to you by your customer or when you are commissioned to make prints by your customer.
If you only sell digital files to your customer then its 21%.
constantine wrote:
Well, I am registered for Vat, and I know what the business end of a Tax audit looks like, and its not nice. I charge Vat just in case, as I said. If I don’t hit the ceiling, I don’t pay it, but what would happen if I did or exceeded the limit and wasen’t charging Vat? A big hole in your end of year revenue I would imagine…
If you are registered for VAT and are charging it but not paying it to the revenue commissioners then you could get in big trouble, regardless of the amount. If you are not registered for VAT but are charging it and providing VAT invoices to your customers then you could be in equally large trouble. Either way I recommend you talk to your accountant quickly.
Aedan
AedanC wrote:
If you are registered for VAT and are charging it but not paying it to the revenue commissioners then you could get in big trouble, regardless of the amount.
AedanI DO pay Vat! FFS, if I have issues on VAT or any other element of my business I talk to my accountant. I’m not great with accounts, hence why I’m a photographer, who employs an accountant. Sorry if I gave out wrong info, but do not imply that I don’t pay VAT!
Ken,
In fairness, Aedan is simply giving some friendly advice based on what you said earlier regading VAT.
Thats how I had read your post also :)Hi Ken,
I apologise if I wrongly suggested that you are charging VAT and not paying it, that was not my intention. As Mark said above I was merely trying to give some friendly advice based on where you said:
Well, I am registered for Vat, and I know what the business end of a Tax audit looks like, and its not nice. I charge Vat just in case, as I said. If I don’t hit the ceiling, I don’t pay it
Best regards,
Aedan
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