WAREHOUSING - 26.03.2024
VAT charged on storage fees for overseas customer?
Q. Our business provides storage facilities in a UK warehouse, mainly to business customers who need to keep stock and assets there. We have agreed a long-term contract to store some goods for a French-based business, which is registered for VAT in France but not the UK. Do we charge VAT on our fees to this customer? ...
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BUILDINGS - 28.02.2024
Do we charge VAT to demolish building so that houses can be built?
Q. My business supplies construction services and I have been asked to demolish a derelict public house, which will then become a site for new houses to be built. The property owner/developer has not yet received planning permission to build houses but does not expect any problems with the local authority. Should we charge VAT on our services or are they zero-rated because they relate to new dwellings? ...
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PROMOTIONS - 28.02.2024
How to account for VAT on customer vouchers?
Your business will sell vouchers to customers that can be redeemed in the future against goods or services that you sell. How should you account for VAT on these vouchers to avoid a problem with HMRC?
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VAT CASES - 29.01.2024
Were reward credits classed as payments or discounts?
The case. Bulb Energy Ltd (B) is a member of a VAT group, of which Simple Energy Ltd (S) is the representative member. In 2016 B introduced the “refer a friend” scheme, which meant that existing customers could click on a referral link to their friends and relatives, to encourage them to change their energy supplier to B. The reward for a successful new account was a £25 or £50 reduction in the new customer’s bill and the same amount for the referrer. HMRC claimed that the credit to the referrer’s account was a non-monetary payment and subject to VAT, whereas B claimed it was a discount and output tax was only due on the net amount payable after the credit. ...
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CHARITIES - 29.01.2024
Is your grant income subject to VAT?
Your charity has received a grant to help fund specific projects and you are concerned that the strict conditions imposed make it subject to VAT. Are your concerns justified and what checks can you make to ensure there are no problems?
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VAT CASES - 04.01.2024
Was fuel and plant hire part of a single supply?
The case. GAP Group Ltd (G) makes supplies of plant and tool hire, e.g. hiring diggers and dumpers to major construction companies. It provides customers with a full tank of red diesel fuel at the beginning of the hire period but only makes a charge at the end of the period - subject to 5% VAT - if the customer returned with a partly full tank. HMRC’s view was that the taxpayer was wrong to separately itemise the 5% fuel and 20% plant hire supplies on its sales invoices and that there was a single supply of plant with fuel, all subject to 20% VAT. ...
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