Vat rate for firewood sale to pubs - recent changes

[Bustergasket]

3.2.2 Supplies deemed to be for domestic use

Supplies of certain small quantities of fuel and power - known as de minimis - are always treated as being made for domestic use, even when the supply is to a business customer. These limits are explained in Sections 4 (gases), 5 (electricity), 6 (oils), and 7 (solid fuels). Supplies within the limits should be taxed at the reduced rate. You do not need a certificate to apply the reduced rate to such supplies (see paragraph 3.5

 

 

7.1.3 Firewood

Ready-cut pieces of wood of a size suitable for use as fuel - such as logs, short waste ends or damaged timber - and held out for sale specifically as firewood maybe sold at the reduced rate. If not sold as firewood they are standard-rated.

I think you could be right Richy, last year they told me 20 % after I put it to them as you have above ref 3.2.2 they agreed 5% I will see if they will email me the interpretation, thanks for the input, not the most interesting topic I appreciate. currently I charge 5%, cheers

[richy_B]

The issue ive found is two officers can interpret it differently. I'd say 5% looks ok but if in doubt charge 20% - as long as you 'collect' the 20% and pass it to HMRC they can't give you too much grief.

[Bustergasket]

Hey, well I spoke to Hmrc today... quick conversation pointed them to the different sections, recorded call on their system 5% based on route we have discussed here, although did suggest I could get it in writing, but would have to apply in writing, the nice lady did say that if I can show compliance with the different sections then that's usually sufficient! have not yet decided to get it in writing yet, what you guys think?