VAT Registration Threshold - Photographers

A number of friends are trying to get a definitive answer on the correct compulsory registration threshold for (social) photographers. Some have been told €37.5k some €75k. At least one has been told in writing by a revenue auditor (during an audit) that the limit is €75k. Others have been told €37.5k.

Questions to local tax offices have had vague and inconsistent replies. Part of the issue appears to be that many photographers sell their services in 'packages' of services and goods. Some of the online revenue documentation states that this is to be treated as supplying goods (i.e. a 75k threshold).

How can this be resolved, as the answers seem to vary depending on who is asked, and the accompanying explanations are often rather vague ?

I'm in the €37.5k bracket, so says my accountant! A few videographers I know think it's the €75k limit. Photographers do give a service, but packages or not, you're giving over a product at the end of the day. It is as you say a bit vague!

Don't deal with any photographers but references to the reduced rate in http://www.revenue.ie/en/tax/vat/leaflets/photography.html
would suggest to me that it's €37,500.

Thanks for the replies.

Their real problem is the inconsistent answers they're getting + lack of clarity/consistency from the Revenue itself.

Joe_90 - I don't think the reduced rate has any bearing on the registration threshold (but does add a separate complication)

It depends on whether you're supplying goods or a service. The supply of photographic prints is a supply of goods (albeit taxable at the reduced rate of 13.5%).

It's my view that the service element (ie the taking of the photographs) is ancillary to the main or principal supply of photographic prints, and therefore the €77,000 threshold should apply.

However, if the photographs are being supplied electronically then I think it could be interpreted as being a service, and the €37,500 threshold would apply.

What may appear to be inconsistent treatment may be down to not comparing like for like. One photographer's supplies could be mainly goods, whereas the next's could be mainly services.

Thanks smeharg - that's the sort of argument I've heard from those going with the higher threshold.

Do you know if there are any test cases or written revenue determinations to back this ?

There's none that I'm aware of and I don't think there needs to be. Photographic prints are goods. The attendance at an event to take the photographs is incidental to the supply of those goods. The time spent on location may be a determining factor in the end price but it is not a service in its own right. You don't hire a photographer to photograph your wedding if you don't want the photographs!

I think the confusion arises because people lose sight of what is actually being supplied. They concentrate on the act of taking the photographs rather than the end product.

You must realise that, though, that this interpretation only applies to the supply of physical prints (and negatives, but I'm not sure you can still get those!). Other supplies may be more properly classified as services, eg photo-editing or electronic images.

Thank You - that seems clear and logical to me.

If it's that clear - I'm surprised that we haven't been able to get a clear and consistent response from revenue.

In practice, what is delivered these days is usually one of the following :

(1) Electronic delivery of images - either on a website or disk
(2) Electronic delivery of images + a professional album and/or prints

euroDilbert said:

In practice, what is delivered these days is usually one of the following :

(1) Electronic delivery of images - either on a website or disk
(2) Electronic delivery of images + a professional album and/or prints

Click to expand...

Well that's why your getting confused messages. If the majority of your work is (1) then it will be deemed a service. If the majority of your work is (2) then it will be goods.

Each individual case will be assessed on the facts specific to it as you can't assume each and every photographer provides exactly the same goods/services in the same way.

Thank You once more - clear and logical reply again.