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VAT Rates ?
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Got some communications during the week regarding new changes to our VAT Rate. Much of the stuff I got was as clear as frosted glass. Now that I have had time to look more closely at the situation I think it means we are 13.5% for photography in the origional format and for the new type digital albums (Graphistudio, etc>) it seem to command a 21% Vat rate. Am I reading it right ?
Got another communication today and it sort of tells me that any digital photography is 21% ………. its still not clear though.
Thats the way I read it Gerry, if you supply photos on a disc it is 21%. I take it you have been charging 13.5% like myself up until now.
I will still wait for the IPPA to confirm all of this, but it looks like all those little grey areas concerning photography and vat are finally being cleared up, not that any of my artists I work for will be happy about it! It should not really matter with other vat registered businesses though.
I have one small problem, I proof my portrait sittings with proshowgold slideshow on DVD, should I charge 21% on my sitting fee and then 13.5% on all prints? I insist that the sitting fee is paid up on the day so no prints will exchange hands until they order some. I think I will have to make up a package, sitting fee and so many prints for X amount with vat at 13.5% and the DVD proofs are free!!
I would imaging that proofing on Proshow is only demonstarting the work to the customer …… its not really selling pictures on a disk ! Can’t say for sure
I had not thought of it like that, I am not supplying the images digitally, they will get them in print only , so yes, 13.5% is correct. thanks.
sometimes you can’t see the wood for the trees!Phil, I know what you mean. Its so hard to think at times and then I feel sometimes my thought process runs a bit wild but really the DVD or CD we use in not being sold but a tool to show the photographs. Still like a clearer clarification though.
Thats clear now Gerry. If only the rest was. i suppose for now we carry on as before until our Professional Body representatives (IPPA) tell us otherwise.
I have a feeling it will go the way of Helens IPN letter.
The revenue service really do need a shake up to clear things up, if you have ever tried to look anything specific up on their website, it is very difficult and there are lots of holes in the information leaving big grey areas.
For instance the vat threshold for a service industry business used to be 25,000.00 euros, now if you look on the website it states anything from 27,500.00 to 37,500.00! they can’t even get it right on their own site. I think it is now 37,500.00 that you can turn over before having to go vat registered.anyway I am sure it will be sorted in time and will end up costing our customers more.
Below is a brief extract taken from the last IPPA Communication sent to me just over a week ago on VAT.
“There are two rates – the Lower Rate (13.5%) and the Standard Rate (21%).
The 13.5% rate applies to the Service of taking the photographs – the photography. Goods specifically Prints, Negatives, Slides & exposed Film, Commissioned Framed Photographic Portraits and Commissioned Wedding Albums comprising an album and prints printed on photographic paper are also rated at 13.5%.
Everything else is rated at the Standard 21%. These are the Facts and the law of the land.”
This still looks like that using photographic paper (as in C41 Process) in any type of album is 13.5% and using any other print process (inkjet, etc) even in old type albums its 21%.
Disks, CD’s, DVD’s, electronic transfer, etc is 21%.Bad news Sean !!!!! …………………. 21%. Unless its on photographic paper, my reading is that its 21%. Supplied by media transfer and disk still seem to be 21%.
Just to complicate things…. I am aware that they (Revenue) indicate that pictures printed directly onto an album should be at 21%, but I think this could be challenged as the end product is a BOOK and books are ZERO rated! –
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