# VAT rates on Design



## marcin (11 Feb 2009)

Hi, I was looking around the forum and couldn't find a simple answer.

Could you tell me is WEBDESIGN service 13.5 or 21.5% Vat? It's confusing because the webdesign is a service, but the website is a product.

The design for print I think is 13.%. An on the invoice I just put:
Design service - xxx euro (13.5%)
10 Posters - yyy euro (21.5%)
?

Can somene try to assure me that I'm right.

Thanx!


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## snowdrop (11 Feb 2009)

marcin said:


> Hi, I was looking around the forum and couldn't find a simple answer.
> 
> Could you tell me is WEBDESIGN service 13.5 or 21.5% Vat? It's confusing because the webdesign is a service, but the website is a product.
> 
> ...



I'm afraid you're not right.  Design including web design is classifed under professional fees so is 21.5% VAT currently.
Printing comes under a number of categories 21.5%, 13.5% and exempt depending on the type of publication eg poster 21.5%, brochure 13.5%, book/annual report VAT exempt. There are descriptions of what is acceptable in these categories and variations such as if a CD is packed with a book then the whole thing is 21.5% so you really need to be aware of the rules.

I respectfully suggest you get yourself to the revenue website (http://www.revenue.ie/en/tax/vat/leaflets/eservices-and-broadcasting.html#section1 for example deals with electronic media/commerce) and download the relevant documentation which is there. You are running the risk of significant liabilities with revenue. Ignorance of the rules is not an acceptable defence with them. If you are VAT audited, you'll be in trouble.

To be honest, you should not be issuing invoices if you are unsure of the classifications.


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## paddi22 (11 Feb 2009)

Yep we are a web and graphic design company and all our invoices are at 21.5%. Any electronically supplied service as defined in irish vat laws ( web hosting, website design, software etc) is subject to VAt at 21.5%.


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## sinkingfish (21 May 2009)

So how does it work if you work full time but want to do some web design on the side? Can you earn €37,500 without having to pay tax? 

http://www.revenue.ie/en/tax/vat/registration/index.html#reg3


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## extopia (21 May 2009)

No, you have to pay tax on any business profits. But if you are under the thresholds you are not compelled to register for and charge VAT on your services.


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## moneygrower (22 May 2009)

You need to register for vat at all if your turn over is less than a certain amount.


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## extopia (22 May 2009)

I think the above post is missing the word "don't". Which means it agrees with my earlier post.


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