Vat on Education Business ?

E

enealon

Guest
I am running a start up business that prepares candidates for Public Appointment Recruitment exams. Can anyone tell me if I must pay VAT or would my service fall under education VAT exemptions?
 
Sounds more like a grooming service (not in the context of pets) than an educational service which is VAT exempt. Probably not what you want to hear but perhaps it would be best to get a ruling from the Revenue as it is something of a grey area. You obviously want it vatable so that you can recover VAT and Revenue might prefer you to be VAT exempt so that they maxmise their take. However it may be swings and roundabouts for you because I would assume your customers would be private individuals who probably would not be able to reclaim whatever VAT you would charge? If that is the case then if you charge say 100 plus VAT the thing is would you get 121 cash from a private person? They may only be willing to part with 100 for example so that 100 would be VAT inclusive if you were VAT registered. Ultimately your bottom line might not be any better than what it would be if you got it classified as VATable. Only the numbers will tell you that.


I am running a start up business that prepares candidates for Public Appointment Recruitment exams. Can anyone tell me if I must pay VAT or would my service fall under education VAT exemptions?
 
You obviously want it vatable so that you can recover VAT and Revenue might prefer you to be VAT exempt so that they maxmise their take.
Its a service business so there is very little expense or stock to claim the vat back on.
If its vat exempt the revenue would be loosing money.

They obviously want it vat exempt so it will cost less to the consumer.IMO

Don't know answer you would need to contact the revenue.