Do you pay VAT on your livery fees?

FestiveSpirit

FestiveSpirit

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I tried googling and couldnt find the answer, but I am charged £25 per week plus VAT for DIY livery - but I didnt think livery was VATable?

Interestingly I got my first invoice today and it is not a VAT invoice
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Only if you're registered for VAT, and the VAT number must be shown on all invoices along with the tax point.
 
Funnily enough this is in this weeks H&H - you've not been writing in have you?
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If your yard is bringing in less than £68k it doesn't have to be VAT registered and therefore you don't need to pay VAT - Although it says it's a complicated issue - basically full livery is not classed as VATable - however if the yard is attached to another business such as a farm or a riding school, other implications may arise...

Clear as mud - but I doubt you should be VATed
Kate x
 
Sad accountant moment.....

10.2 Stabling
If you allow an owner exclusive use of stabling (that is you allocate all or an identifiable part of the stabling for the sole use of his animals) this is either an exempt supply of a right over land or standard-rated if you exercise the ‘option to tax’ – see Notice 742 Land and property.

You may zero-rate separate supplies of feed (either as general feed or in the form of grazing rights) only when no element of care is supplied.

top ^10.3 Livery services
These are services provided for horses in a stable that go beyond the right to occupy the stable.

They may include:

feeding or turning the animal out to graze;
mucking out, spreading straw or other bedding;
worming and clipping;
grooming and plaiting; or
taking on any responsibility for the welfare of the animal, including arranging for veterinary treatment,
but not clearly identifiable separate supplies such as veterinary services.

You must standard-rate the supply of livery services, including any food provided, unless the stabling is an exempt right over land – see paragraph 10.2 – which you have not opted to tax.

If the supply of stabling is a right over land and you have not opted to tax it, the whole livery package is exempt

What this is saying is that services are Vatable and if provided with a stable, unless they opt to not not tax the stable element, then yes it is vatable.
 
Oooh might be worth buying H&H and having a look then
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The livery yard is just a yard but they call it a farm so I think they must have some complicated little tax thing going on here (not saying illegal or anything BTW, just complicated!)

I am pretty sure the yard isnt big enough to bring in more than £68k per year
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The easiest way to find out is to ask for their VAT number (say it's for your accounts) and then you will know if they are VAt registered
Kate x
 
Well thank you for the accountant-speak clarification Jane
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No seriously, I appreciate it
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It is really odd, the invoice quotes their VAT number, they charge VAT on the weekly DIY livery rate (although do not specify the VAT amount seperately), but the invoice is not a VAT invoice and they dont charge VAT on their 'other services' - bring in, turn out etc
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Yes, but their farm probably includes the livery business, and as a whole it would be over the threshold for VAT purposes, therefore, they are VAT registered, and as such, must charge VAT on goods and services.

Livery is a service, therefore, apart from the instances Jane-lou has highlighted it would be charged.

The only concern here is that you haven't had the correct invoice. If you charge VAT you MUST show your VAT number on all invoices, and a tax point. Furthermore, if the invoice includes zero rated, exempt and Vatable items, there should be a breakdown on the invoice.
 
They dont actually have a farm - they just call the livery yard a farm?

Yep I know what a VAT invoice needs to have on it, hence I know it isnt one
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Oh well, not a huge deal, I just wondered
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I agree with Jane-lou, very back to front!! and very odd! Maybe they aren't sure which parts they should charge VAT on, and which parts they shouldn't!

I would query it definitely
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You can still opt to exempt the "right over land" (the actual rent of the stable and grazing) even if you exceed the Vat threshold. The farm where I keep my horses for example exempt the stable rent and supply of hay and straw but provide no services.
 
Why not do the question ??

"I appreciate you charge VAT on my livery bill... however you haven't provided me with the correct invoice. As I have to do a self assement and VAT return for my employment. Would you mind providing the correct invoice as i need to provide them at a later date."

Would be interesting to see the reply!
 
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