Selling firewood with vat at different rates

[logmancheshire]

Can anyone help? When selling to private individuals we charge 5%, shops / retailers we charge 20% who then resell netted logs for example at 5% because they are selling to the end user, but what about selling logs to a pub who will burn them for their own heating.......Answers please, as don't want to get caught out if we ever get an investigation. Thanks

[felixthelogchopper]

If you look at it as end user or not, it makes it easier. The pub isn't selling them on so it's 5%

[logmancheshire]

Coolio. Cheers. Makes sense to me!

[Justme]

Check out the VAT deminimis rules for firewood.

 

You can sell quite a lot to a commercial user before you need to sell at 20%.

 

linky

 

Read sections 7.1.2 & 7.1.3 & 7.2

[Alycidon]

Vat offices are very reluctant to make decisions. At the end of the day if the pub is the end user and burning the logs then its 5%. If they are selling them on then its 20% but this is unlikely,

 

A

[RedKev130]

Solid fuel for Domestic & Residential use or non-business use by a Charity is Reduced Rate of 5%. Fuel for Business (i.e. Pub) use is Standard Rate . VAT Notice 701/19

[ThrustSSC]

Solid fuel for Domestic & Residential use or non-business use by a Charity is Reduced Rate of 5%. Fuel for Business (i.e. Pub) use is Standard Rate . VAT Notice 701/19

 

Solid fuel, yes. Wood, no.

 

In this context, "solid fuel" means coal, coke, anthracite, etc. Business use for biomass is still 5%. I think wood is unique in that.

 

Don'tcha love our complex tax system. It's crap like this that creates loopholes for people to avoid tax with!

[Marc Lewis]

If you charge for delivery on top, would the delivery be charged at 20% or 5%?

[Alycidon]

if you charge for delivery on top, would the delivery be charged at 20% or 5%?

 

20%.

 

A

[richy_B]

20%.

 

A

 

I had a recent VAT audit and I was told the VAT rate for delivery follows the VAT rate for the product. 5% Fuel, 5% on the delivery. 20% Fuel, 20% Delivery.