Pub still charging 17.5% VAT
04 January 2009, 07:31 PM
#31
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Not sure if anyone else can confiorim whether this is true or not but we have some products being sold at 17.5%VAT as the boss has already paid the VAT on them? and the same but recently restocket products being sold at 15%VAT.
04 January 2009, 08:10 PM
#32
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At worst the pub is guilty of producing a receipt wrongly.
What happens in the UK is that the price shown is inclusive of the tax so if its £10 that includes the VAT and if your not a VAT registered business buying the goods then its really semantics about the 2.5%
As for the simplicity of change its not as simple as people think, the VAT guidance on this is bewildering.
For example, if you pay monthly to be a member of a health club and you joined before the 1st December then your monthly fee stays at 17.5% VAT, if you join after its 15% but the admin systems cant tell the difference.
All in all the VAT change is a total goatf__k for many business operators.
What happens in the UK is that the price shown is inclusive of the tax so if its £10 that includes the VAT and if your not a VAT registered business buying the goods then its really semantics about the 2.5%
As for the simplicity of change its not as simple as people think, the VAT guidance on this is bewildering.
For example, if you pay monthly to be a member of a health club and you joined before the 1st December then your monthly fee stays at 17.5% VAT, if you join after its 15% but the admin systems cant tell the difference.
All in all the VAT change is a total goatf__k for many business operators.
05 January 2009, 10:18 AM
#33
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More to the point, if he is adding VAT to sales, he must be VAT registered, then he is entitled to claim INPUT VAT back from HMRC. So whether he paid for the goods with 17.5% or 200% VAT is irrelevant to the rate that should be charged.
From the 1st December 2008 the standard rate of vat was 15%, irrespective of whether the goods you are selling were bought at 17.5% or 15% vat. FACT.
With effect from 1st December 2008, all sales by VAT registered businesses, must issue sales receipts/invoices which show a calculated rate of VAT of 15% on all standard rated items. FACT.
If a businesses is issuing receipts with VAT greater than 15% they are in the wrong, SIMPLE AS THAT, irrespective of whether the tariff price is inclusive of VAT or not!
The type of product being sold, the category it falls into and the legislated rate of VAT for that category determine how much VAT is added to/included in an items price.
Broadly
0% - Zero rated items eg childrens clothes
5% - Reduced rate items eg domestic fuel and power
15% - Standard rate items eg adult clothing, petrol
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