The VAT debate continues ..........

[davetaz]

I know there has been lots of discussion on this but i've come across a situation that contradicts the 15% on buying timber theory.

I was contacted today by a forestry/timber supplier to see if I was interested in buying timber for firewood as I am on his list of firewood producers. The timber is mainly oak with some ash and about 10% pine. He gave me a price which I thought was ok and I asked about VAT. He said it was 5%! I questioned this and he said they have queried this through their accountant and although I am not the end user it is still classed as fuel wood.

Maybe if you are supplying timber to be processed in to firewood you can call it firewood right from the start and therefore only need to charge 5% VAT.

This company, I was told, have been selling timber for firewood with only 5% VAT for some time - maybe it depends what you write on the invoice.

 

Has any body got any definitive information or advice from own experience or from Customs & Excise on this matter?

[skyhuck]

What quantity you buying???

 

With Oil if you buy 2000L or less its 5%, more than 2000L its 15%.

 

Could be similar for wood.

[davetaz]

Artic load 25T

[skyhuck]

Artic load 25T

 

IMO, that should be 15%, I would not be happy to pay 5%, as if it turns out wrong YOU will be liable for the other 10%.

 

Are you VAT registered???

 

Please ignore this.

Edited October 30, 2009 by skyhuck

[Steve Bullman]

would it be him or would it be the seller? i would have thought the fault would lie with the seller??

[Andy Collins]

I thought timber was bought in at 15% in cord length say, and sold on to customers in log form at 5%?

[skyhuck]

would it be him or would it be the seller? i would have thought the fault would lie with the seller??

 

Yes I think you are right, its been a long week,lol.

 

Pay 5% and run.

Edited October 30, 2009 by skyhuck

[Steve Bullman]

resisted?

[davetaz]

I thought timber was bought in at 15% in cord length say, and sold on to customers in log form at 5%?

 

I'm wondering if it depends on how you describe it, if you had 25T timber to sell to a saw mill for planks etc then it would be VAT @ 15%, if you are selling it to a firewood producer as firewood then may be you only need to charge 5%:confused 1:

[Steve Bullman]

bottom line is, your guy is wrong...im 99% certain of that