VAT is charged at different rates for various goods and services. … 13.5% is a reduced rate of VAT for items including fuel (coal, heating oil, gas), electricity, veterinary fees, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services.
Is VAT charged on coal?
The VAT guidance says: The reduced rate of VAT applies to supplies of fuel and power for qualifying use (see Section 3). charity non-business use (see paragraph 3.3). A supply of one tonne or less of domestic grade coal or coke that you hold out for sale as domestic fuel is taxed at the reduced rate.
What items are zero-rated for VAT?
Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. The goods covered by this classification are items such as children’s clothes and footwear, water, basic foods, books and newspapers.
What is the VAT on firewood?
VAT on domestic log fuel is levied at either the reduced rate of 5% or standard rate of 20% VAT.
What dont I pay VAT on?
Check the VAT rates on different goods and services. Some things are exempt from VAT , such as postage stamps and some financial and property transactions.
VAT and duties.
|Rate||% of VAT||What the rate applies to|
|Zero rate||0%||Zero-rated goods and services, for example most food and children’s clothes|
Do we pay VAT on electricity?
Should I pay VAT on gas and electricity for business? VAT is payable on all business and domestic energy usage. This means you’ll pay VAT on any gas and electricity you use for work purposes, whether you’re on business premises or working from home.
Can you reclaim VAT on fuel?
You can reclaim all the VAT on fuel if your vehicle is used only for business. There are 3 ways of handling VAT if you use the vehicle for both business and private purposes. You can: reclaim all the VAT and pay the right fuel scale charge for your vehicle.
Is Bread VAT exempt?
The VAT Act contains a list of 19 food items that qualify for the zero rating. These include, amongst others, items such as fresh fruit and vegetables, brown bread, milk and eggs.
What items are 5% VAT?
The reduced 5% VAT rate applies in the following areas:
- Food and non-alcoholic drinks which are sold to eat on the premises of places such as restaurants, cafés and pubs, as well as hot takeaway food and non-alcoholic drinks.
- Holiday sleeping accommodation, including hotels and pitch fees for caravans and tents.
Do you pay VAT on baby items?
There are also some goods and services that are zero-rated for VAT, which means that no VAT is paid or can be reclaimed on them. … Zero-rated goods and services include: baby and children’s clothes. printed materials, such as books, magazines and newspapers.
Is firewood VAT exempt?
Ready-cut pieces of wood of a size suitable for use as fuel – such as logs, short waste ends or damaged timber – are standard-rated if not held out for sale specifically as firewood.
Why do we pay VAT on electricity?
The government requires businesses to pay Value-Added Tax (VAT) on all your energy consumption. VAT is normally charged for your electricity and/or gas usage at the standard rate. However, in certain circumstances, businesses can qualify for a reduced VAT rate that equals to the domestic rate.
Who qualifies for reduced VAT on electricity?
If you’re a low-energy user
If, on average, you use less than 33 kWh of electricity per day or 1,000 kWh of electricity per month, you should qualify for VAT at the reduced rate.
Who pays VAT buyer or seller?
You must account for VAT on the full value of what you sell, even if you: receive goods or services instead of money (for example if you take something in part-exchange) haven’t charged any VAT to the customer – whatever price you charge is treated as including VAT.
What happens if you charge VAT but are not VAT registered?
A penalty is payable by anyone who issues an invoice showing VAT when they are not registered for VAT: paragraph 2, Schedule 41, Finance Act 2008. The penalty can be up to 100% of the VAT shown on the invoice.
Can I claim VAT back if I am not VAT registered?
Can I get it back? If you are not VAT registered then you will not be able to reclaim any VAT unless you are a visitor from overseas. If you are a VAT registered trader, then you will normally offset the VAT you have been charged by your suppliers against the VAT you have charged your customers.