In recent months I’ve noticed a few people mentioning that the VAT rate on services is 13.5% (One even charged it incorrectly on an invoice). Simply put the VAT rate on services is often NOT 13.5%
13.5% is the ‘lower’ rate of VAT. 21% is the ‘standard’ rate of VAT.
To give you an example the following services are all invoiced at 21%
Consultancy (Excluding farm)
Art & Artists, Design – (Adverts,commercial drawings)
This list is by no means exhaustive. The moral of the story is! If your not sure what VAT rate you should be charging check it out.
If you would like any advice on VAT matters please phone Ralph on 091-442882