vat on firewood

[AJR68]

Yep we charge the garages and shops 20% vat, our accountants seem to be happy....

[scbk]

I think the 5% would only apply to home heating, so if it was a pub etc buying it to burn themselves it should be 20%

[ThrustSSC]

I think the 5% would only apply to home heating, so if it was a pub etc buying it to burn themselves it should be 20%

 

That would be true if it was e.g. oil. But not wood, which is charged at 5% to the end user regardless of whether it's commercial or domestic. Take a look at the HMRC documentation on it - it is pretty straightforward on the matter!

[Spruce]

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.

 

The FC sell cord to the end user at 5% VAT. 25 tonnes is about a year's supply to heat a reasonable sized house up here, a lot of (most?) people who rely on wood for heating buy in by the artic load and process themselves. It wouldn't be financially viable to do it any other way.

[Crazy Cutter]

Nick what vat do you charge on the 70.00 per tonne delivery to Norfolk?

 

And is that included in the price or on top?

[tcar]

The FC sell cord to the end user at 5% VAT. 25 tonnes is about a year's supply to heat a reasonable sized house up here, a lot of (most?) people who rely on wood for heating buy in by the artic load and process themselves. It wouldn't be financially viable to do it any other way.

 

That's the way we do it and we pay 5% on an artic load.

[StephF]

Fc sell me cord at 20%, and call it 'firewood' on the invoice, I sell on at 5%, I've never managed to find anyone who has been sold it at 5%, which office have they dealt with?

(I know I'm not the end user, but they have never even asked ).

[hardtop110]

Look here - HM Revenue & Customs

 

The key word is consumer

 

If you are selling to the end user for domestic use then the VAT rate is 5%

If you are selling to another business either for their use or their resale, then the rate is 20%

Charities also qualify for the lower rate as do mixed loads, where more than 60% of the use is for domestic or charity use.

[mikey10]

Fc sell me cord at 20%, and call it 'firewood' on the invoice, I sell on at 5%, I've never managed to find anyone who has been sold it at 5%, which office have they dealt with?

(I know I'm not the end user, but they have never even asked ).

 

1st load of wood i had from euroforest they charged 5%, i had to phone them and told them i would be reselling it so then they sent new invoice with 17.5% on it

[nick channer]

Nick what vat do you charge on the 70.00 per tonne delivery to Norfolk?

 

And is that included in the price or on top?

 

20% on top i'm afraid..