Can Theate Companies Claim back VAT for services/ goods?

ArtSmart

for instance, goods wise =sets made specially for the theatre company by a separate VAT registered manufacturing company?

Services = advertising.?

(Or does VAT exempt, also mean that the theatre company does not PAY VAT to other VAT reged companies? Hardly the case, but just asking)
Appreciate any info.

Thanks

Art

ETA. THE UNDERSTANDING HERE, IS THAT THE THEATRE COMPANY IS VAT EXEMPT.

ArtSmart

*callin' all accountants*

*come in, please. over*

BowSideChamp

General rule - If your sales are vat exempt you can't claim vat on your purchases.

ArtSmart

But the company would not be VAT neutral if they had to pay VAT on goods/ services?

Does this mean the company tells suppliers they should NOT be charged VAT?

ArtSmart

Or are theatre and similar companies afforded the 'benefit' of exemption, on the assumption that the services they provide (a show) are not liable to charging VAT because their VAT outgoings/payments to other reged businesses will definitely be less than the theatre company's VAT charge for a show?

ie, possible VAT for a show to consumers = 7k

possible VAT charge from suppliers = 3k

so the 'benefit' is a net gain of 4k?

Sorta wishful thinking, methinks...

Alan_007_

I'm not trying to be smart, but you surely have an accountant that you could ask about this?

ahnowbrowncow

To put it simply, someone has to pay the VAT. So if you're not charging your customers VAT then you have to pay it i.e. you can't claim it back from your purchases.

cheesypuffs

A theatre company is not necessarily exempt, only 'dry' performances where no food or drink is available are, otherwise 9%. If you are exempt, that means you cannot claim vat you are charged, nor can you charge vat. However, any vat you pay is still deductible against profits.