vat on firewood

[dave fox]

its classed as fuel so 5%,

[AJR68]

See attached Nick.

Fuel+and+power.pdf

[Alycidon]

If you are selling fuel to the person that is going to burn it then 5% is chargeable. If that person is intending to resell it then you must charge the full 20% rate.

 

It might be arguable that selling cord to an end user could be charged at 5% but 25 tons for a single end user is a huge amount and the VAT inspector may take some convincing.

 

Get it wrong and you have to pay not only the shortfall in tax but also a fine of the same amount and thats for a first offence. When I had a fall out with the VAT a couple of years ago one of their inspectors told me 'its not our job to tell you, its your job to find out'.

 

I did my return last week, in the last quarted I imported some stoves from Ireland (Eire), they came in charged in sterling and zero rated.I rang the VAT help desk to ask advise on how this invoice should be shown on my return, what they told me did not make sense, I rang my accountants, it did not make sense with them either, the accountants rang the VAT and received info that was 100% different to what the VAT helpdesk told me, now how do you put that through !!!!. I went with the accountants version.

 

A

[likeitorlumpit]

lazy gits

[Billy68]

you need to look for a new accounant its 5% to end user

[Alycidon]

you need to look for a new accounant its 5% to end user

 

I think you are misunderstanding me, I was not talking about wood but stoves that I had imported.

 

Another wrinkle is wood pellets, sell them for burning then 5%, sell them for pet bedding then its 20%.

 

A

[18 stoner]

lazy gits

 

:lol:

[dave fox]

so if you sell logs to a farm shop you should charge 20% not 5 % ? because they will sell it on?

[muldonach]

so if you sell logs to a farm shop you should charge 20% not 5 % ? because they will sell it on?

 

Correct

[Alycidon]

so if you sell logs to a farm shop you should charge 20% not 5 % ? because they will sell it on?

 

Yes, it should be no problem because as a trader they will reclaim the VAT you charge and pay the VAT they collect.

 

A