Yep Kris she can register and as you know, once you have a spreadsheet or similar system set up then the calculations will be automatic. It's just got to be a worthwhile amount of nail-packs etc to be worthwhile.
I have been approached by a podiatrist looking for advice on VAT. I understand podiatry services to be VAT exempt but if she sold other goods like nail care packs etc to clients could she then voluntarily register for VAT.
My reading is that she would not only be providing VAT exempt services so she could, but I just want to confirm this with others.
I'd be quite certain of your ground if I knew that the podiatrist was primarily visiting old folks homes or treating professional athletes. If she was primarily servicing the acting profession, the foot care aspect might not be medical.
If she wanted to expand to a cosmetics shop, then it might become worth registering. You'd then need to do the partly exempt calculations and annual adjustment similar to retail schemes, so there'd be your fees to consider.
Its mainly going to be treatments in peoples homes, the elderly will be the main clients. It is medical, this is one of the things we spoke about for a while.
She wants to voluntarily register for VAT as many of the services/goods she will buy will be standard rated, but as the services she supplies are exempt, I thought if she sold some standard rated items she could at least register.
Is she has both exempt and VATable supplies she would be able to register for VAT but would need to account for VAT under partial exemption rules.
The effect of the rules are basically as follows. Any purchases directly related to VATable supplies can reclaim VAT. Any purchases directly related to exempt supplies cant recover any VAT. Any purchases related to both VATable and exempt supplies can reclaim a proportion of the VAT according to the partial exemption rules.
