whats the vat on cordwood

[Justme]

In your case then 20% applies.

 

I still stand by the VAT being 5% on cord (cord sold for firewood not saw logs) if its to the end user. Its still firewood.

 

 

7.1 What supplies are taxed at the reduced rate?

The reduced VAT rate applies to supplies of coal, coke and other solid combustible materials for a qualifying use (see Section 3) provided:

 

you hold them out for sale solely as fuel, and

they are offered in a form and at a price that is compatible with their being sold as fuel.

 

7.1.2 Wood, peat and charcoal

A supply of wood, peat or charcoal that you hold out for sale solely as fuel qualifies for the reduced rate provided that your customer does not intend to resell it. This applies regardless of the amount you supply.

 

7.1.3 Firewood

Ready-cut pieces of wood of a size suitable for use as fuel - such as logs, short waste ends or damaged timber - are standard-rated if not held out for sale specifically as firewood.

 

'Held out for sale' as fuel means that you advertise and otherwise describe the product at its point of sale as fuel or firewood, and that this is consistent with the packaging and wrapping in which you supply it.

 

7.2 What supplies are standard-rated?

Supplies of solid fuels for non-qualifying use are standard-rated, unless the quantity supplied does not exceed the de minimis limit referred to in paragraph 7.1.1.

 

Generally, solid substances that you do not hold out for sale as a fuel or are unsuitable for use as fuel are standard-rated. Examples are horticultural peat or artists’ charcoal. The following items are always standard-rated:

 

any product not consumed in the lighting process, such as pumice blocks, porous pottery, to be soaked in paraffin or methylated spirit, gas pokers and electric hot-air igniters

artists’ charcoal

binding agents, such as gum or cement, used to convert coal dust or sawdust into blocks or pieces (although the use of such binding agents in their manufacture does not affect the liability of the items themselves, and the final product may still be treated as fuel if appropriate)

'DIY' timber offcuts and remnants

coke for use in manufacturing

filtration charcoal or coke

forestry thinnings for fencing or staking

laboratory charcoal blocks

matches

peat for use in horticulture or as cattle litter, such as moss and sedge peat

sawdust, wood chips or shavings for animal litter

standing trees, and

wood for pulping.

 

 

No mention of cord being always full rate or you having to supply split logs to qualify for lower rate.

[kevinjohnsonmbe]

Good thread!

[TimberCutterDartmoor]

Roundwood stacked at roadside isn't firewood until it's been processed.

 

Nice to see the term "roundwood" the correct term

[Chris Sheppard]

Nice to see the term "roundwood" the correct term