J
Jasper91
Guest
Hi, I hope I can get some assistance here. When I left Art college many moons ago I applied for and got the Artists Exemption. Living on the income was really not on so in addition to my work as an Artist I started a small business in a different field (services). I always showed my income from Art on the tax returns for this company and paid my PRSI on that income. However as the business grew I had to register it for VAT. The issue I face is that while my income from art has usually been 4-5k Per annum. The revenue are now insisting that as a sole trader registered for VAT I also have to pay VAT on my Art which is totally separate from my business. My argument is that the business VAT threshold is based on turnover and Artist Exemption threshold limit is based on income. My accountant is unsure and is telling me that the cost of an opinion far outways the potential VAT liability, but it's still a large amount to me.