VAT Returns

kilmurry

Hi,
I was wondering if anyone could help me.
I am self employed with about 3 years, I have an accountant but a friend of mine who is also employed also has a different accountant.
I own my own tipper truck and just do deliveries out of builder providers and the like to building sites.
The problem is when it comes to making the VAT returns. Both accountants think differently when it comes to this.
My accountant believes I should be paying 13.5% VAT but the other accountant says this incorrect and I should be paying 21%.
As I cannot get a clear answer from those who should know, I was hoping someone hear could help me.

Thanks in advance!

kluivert

kilmurry wrote:

Hi,
I was wondering if anyone could help me.
I am self employed with about 3 years, I have an accountant but a friend of mine who is also employed also has a different accountant.
I own my own tipper truck and just do deliveries out of builder providers and the like to building sites.
The problem is when it comes to making the VAT returns. Both accountants think differently when it comes to this.
My accountant believes I should be paying 13.5% VAT but the other accountant says this incorrect and I should be paying 21%.
As I cannot get a clear answer from those who should know, I was hoping someone hear could help me.

Thanks in advance!

The two-thirds Vat rule.

Revenue state that if your trade is the provision of services charge 13.5%.
If you provide consumables you charge 21%.

Now what if you carry on a trade in which you do a bit of both the question is then what rate do you charge?

The revenue apply the 2/3rd's rule. Which basicly says that in carrying out your trade, if more than 2/3rd's of the work carried out is the provision of consumables then you charge 21%, if consumables are less than 2/3rd's then you charge 13.5%.

From what you describe as per above you are providing a haulage service, your not selling anything, therefore you should provide vat at 13.5%. As you have no consumables for service and your trade sounds like a 100% provision of a service, moving consumables from building providers to building site.

I hope that clears things up.

MartMax

you can ask your accountant to get confirmation from the Revenue, i've never done on sthing like this. but normally, on huge transactions due to take place, we always write to the Revenue, especially on huge VAT cases like properties etc. at least you get to know what the Revenue says. just to cover your arse.

kilmurry

Hi ,
Thanks very much for those replies.
I had planned on ringing the Revenue, but I wanted a bit more knowledge before I rang. I am sure I will be passed around a few times before I get to speak to anyone who can hopefully telll me what I need to know.

Thanks again.

TillyT

Are you buying materials for the job or is it just using the tipper truck to collect whatever and dump at locations?

If there are no purchases from your side and you are just using your truck for a service then you should charge VAT at 13.5%.