Wedding band/ Should we be paying VAT?

D

divyg

Guest
Hello,

I am in a wedding band with two other people and we have registered as a partnership and we currently paying VAT. Somebody actually told us recently that we only have to pay VAT if each individual is earning more than €35,000. The Partnership has a turnover of about €50,000 per year so means each individual is earning well below €35,000 each. Are we paying VAT unnecessarily? We'd very much appreciate your thoughts on this issue.
 
The threshold is determined by reference to a "taxable person". A patnership is considered a taxable person so would be subject to the same limit as say a limited company or a sole trader. The number of persons in the partnership or in the limited company does not mean the VAT threshold multiplies also.

For reference since 01/05/2008 the threshold for services is actually €37,500.

Page 13 of the Revenue's VAT Guide has the relevant details.

www.revenue.ie/en/tax/vat/leaflets/vatguide_2008.pdf
 
Ok, thanks for your reply. A lot of bands don't seem to charge V.A.T and is that because they are breaking the law or is there some way around it? We are just trying to do things properly but 21.5% is a lot for us to absorb and remain competitive. Thanks for your information!
 
They're either below the €37,500 threshold or operating in the black economy. If you as a compliant entity cannot compete then why not report bands you know are not VAT compliant? They're shafting the Exchequer and not competing fairly with you.
 
As John Rambo said, they're either under threshold or ignoring the law. Out of curiosity how much, on average does a wedding band cost, divide that into the threshold = No of gigs to do before going over threshold. How many bands would do that few/many ? Gives you food for thought.
 
Photographer, band, dj etc. all wanted cash at my brother's wedding.

I was best man. They were like vultures looking for their money.

Condition of booking .... cash. All I did was hand over envelope but I wasn't happy to be party to the 'cash market'.

Sister got married last year .... band said cash only or no booking. And cash they got as far as I know.

If you get cash ... thresholds don't bother you.

Revenue should 'book' a few weddings!
 
wedding band vat

I also am in a wedding band in Ireland and the subject of vat has just come up. We are not registered as a partnership and have not broken the earning threshold as yet. Are we legally obligated to form a partnership or can we remain sole traders?

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