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Freelance VAT

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  • 12-02-2010 2:41pm
    #1
    Registered Users Posts: 80 ✭✭


    I recently accepted a freelance position - 2 days a week in a design studio.

    When giving my daily rate I didn't include VAT on top of that. Do employers assume that the VAT is included in the rate?


Comments

  • Registered Users Posts: 7,265 ✭✭✭RangeR


    Generally B2B is ex VAT.


  • Registered Users Posts: 80 ✭✭swimgal


    Oh thats great - I though I was going to get caught out on the money. So I can add on the 21.5 percent. Hopefully they won't question it. Don't usually work freelance so not used to this at all!


  • Registered Users Posts: 2,298 ✭✭✭martinr5232


    swimgal wrote: »
    Oh thats great - I though I was going to get caught out on the money. So I can add on the 21.5 percent. Hopefully they won't question it. Don't usually work freelance so not used to this at all!

    Would you not be charging the lower VAT rate as you are offering a service.

    I could be wrong maybe someone else can tell you for certain and by the way the higher VAT rate is now 21% since January.


  • Registered Users Posts: 7,265 ✭✭✭RangeR


    Yup, I believe services are at about 13%.

    OP, are you VAT registered? If not, you can't charge tax. You only need to be VAT registered if your income exceeds a certain threshold. Not sure what that limit is.


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