5% or 20% vat

[billt]

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.

 

That surprised me; the last lot of coal that I bought was 2 tonnes in one delivery and VAT was charged at 5%.

 

You may be misunderstanding the de minimis rule:

 

"3.2.1 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. "

 

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?

 

HMRC site says:

 

"3.2.2 Other supplies that are for domestic use

 

Supplies of fuel and power that exceed the de minimis limits are for domestic use only if they are for use in a dwelling or certain types of residential accommodation "

 

HM Revenue & Customs

 

If you use wood for a log boiler based CH system it is perfectly reasonable to buy an artic load and process it yourself for domestic use,it should provide 3 or so years supply. I keep thinking about it myself, but it's too expensive!