I have a client who provides 3 types of veterinary services:
1) general services to race animals (track dogs, race horses)
2) Vaccinations to racing animals
3) general services to pets
The client currently turns over less than the VAT threshold, but they are likely to exceed it soon.
I know (3), above, is definitely standard rated, but I'm not sure about (1) and (2). HMRC expect us to get this right, but I can find little to no guidance online. I believe there is an exemption or zero-rating (not sure which) for working animals and professional sporting activities, but I'm not sure is that extends to veterinary services provided thereto.
The turnover from pets will only be around £20,000-£30,000 per year, so the one service that is definitely standard rated is well below the VAT threshold. What will make the big difference is whether types (2) and (3) are zero-rated (in which case the vet would definitely need to register) or exempt (in which case they wouldn't need to register).
So, my question essentially is, do veterinary services provided to racing animals come under the zero-rating for working animals, or does the VAT exemption for professional sports apply to veterinary services provided to animals used in the sport? Or, have I got the whole thing wrong, and all three types of service are standard rated?