Tax for Small business - drama school

Guys I was asked smem advice on this by someone and cant find the definitive answer anywhere so maybe the world of AAM can help!!

If someone is running a drama school for kids - teaching dance etc on a part time basis is that a tax exempt activity? She claims that it may fall in to artistic relief - I dont think it does in fact I am pretty sure it does not, but she also claims it may fall in to an educational activity which she claims is exempt. I cant confirm or deny this fact with any evidence from the revenue website. Anyone have any idea on this one??

You can assume that this individuals day job takes her above the tax free cut off!!!

A follow on question will obviously be are the fees for the classes subject to VAT if above the treashold???

Any assistance greatly appreciated.....

Re: Tax for Small business - drama school!

would not be tax exempt. vat on dance lessons would be at 21%. would not be obliged to register for vat thought until sales go over €35k

Re: Tax for Small business - drama school!

xxx said:

vat on dance lessons would be at 21%. would not be obliged to register for vat thought until sales go over €35k

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Are you sure? Education and training services are VAT-exempt.

Re: Tax for Small business - drama school!

dance lessons as per revenue.ie are 21%.

Re: Tax for Small business - drama school!

Confirmed here

[broken link removed]

Excluding BALLET lessons-exempt

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...for some bizarre reason

Interesting.

Thanks

Re: Tax for Small business - drama school!

How would you classify educational activities as it is not just a dance school - It teaches drama, acting etc to kids - If we declare the school a educational facility would that then indicate a Vat exempt activity?

Also from a tax perspective - I was not surprised to hear that it would not be tax exempt.

Re: Tax for Small business - drama school!

figgy said:

Also from a tax perspective - I was not surprised to hear that it would not be tax exempt.

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Why? I would have thought that it was obvious that income from education services is assessable to tax, eg a teacher giving grinds?