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5% or 20% vat


borderfirewood
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We only ask as a our accountant says there is a legal limit at which a load can be charged at a domestic rate before you have to charge at the commercial rate but we are thinking that as long as a customer is only using it for himself then surely it shouldn't matter whether he has 2 tonne or 26 tonne the vat rate should still only be 5%. We are still waiting for the accountant to get back to us so we thought all you wise people could inform us

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We only ask as a our accountant says there is a legal limit at which a load can be charged at a domestic rate before you have to charge at the commercial rate but we are thinking that as long as a customer is only using it for himself then surely it shouldn't matter whether he has 2 tonne or 26 tonne the vat rate should still only be 5%. We are still waiting for the accountant to get back to us so we thought all you wise people could inform us

 

i sell artic loads cord at 5%.. as long as its for their own use they could have as much as they want

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I know with our coal if we sell a customer more than a ton of coal in one transaction then we by law have to charge 20% Vat on the invoice, but if they have half a ton on Monday and another half a ton on Tuesday and are two separate transactions/invoices then we can charge 5% Vat on this.

 

So as Coal and Logs/firewood are both classed as solid fuel i think this could be the weight for firewood also? I think this is a very grey area in our trade and until one of us has a proper Vat inspection from H M Revenue and Customs it might not come to light.

 

where do you draw the line between domestic and trade buying 26 ton loads of timber to cut up for there own stove??? There may be a few about but its just a way to dodge the vat for the non registered firewood supplier is it not?

:001_tt2:

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Wood is treated differently to coal - or oil for that matter. It's 5%, regardless of volume, as long as it's for the end-user's use. It doesn't matter if the end-user is a business or residential (not so for oil, for example).

 

If you're buying to resell, like most of us here do when we get cordwood in, it's 20%. Hence it makes sense in our business to VAT register. Most of us will be net VAT claimers.

 

It's all pretty clearly laid out on HMRC's web site. Just follow your nose. IMHO they've done a pretty good job of setting out the rules so they're easily understood (unlike their crass incompetence in other administrative matters).

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We only ask as a our accountant says there is a legal limit at which a load can be charged at a domestic rate before you have to charge at the commercial rate but we are thinking that as long as a customer is only using it for himself then surely it shouldn't matter whether he has 2 tonne or 26 tonne the vat rate should still only be 5%. We are still waiting for the accountant to get back to us so we thought all you wise people could inform us

 

Go over your accountants head then, ask the VAT man

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