Vat question..simple but...........

godskitchen

i have what i thought was a simple question, turns out i cant find an answer.....

i need to charge vat at the two rates, one at 21%, the other at 13.5%

How do i invoice for this?

Do I for example: €100 + VAT @ 21%
€100 + VAT @ 13.5%

total VAT would be €34.50c

thanks for any help!

karangka

Yes you are correct.

If let say the job cost is €150 which €50 is to be charged at 13.5% and €100 at 21%, the total invoice value should be:

Net = €150

VAT @ 13.5 = €6.75

VAT @ 21% = €21.00

Total = €177.75


Make sure you give the breakdown of the VAT rates and charges on the face of the invoice.

godskitchen

Thanks for that! your a star!

Wolff

No quite that simple im afraid depends on if you are supplying goods and a service together

hence -


The “two-thirds" rule
17.4 The rate of VAT applying to services, including building services, depends on the “two-thirds" rule. This provides that a transaction is liable to VAT as a sale of goods at the appropriate rate and not as a service, if the value of the goods used in providing the service, that is their cost excluding VAT to the service contractor, exceeds two-thirds of the total VAT exclusive charge to the customer.

The “two-thirds" rule does not usually affect building services in which the labour element is substantial. It would be likely to come into operation in the case of a service consisting of the supply and installation of, say, a transformer or a strong room. The possibility of its application should never be overlooked and contractors should consult the local inspector of taxes if there is any doubt about the correct liability to tax. Sub-contractors, in particular, may find that the 21% rate may apply to their portion of a main contract even though the main contract may itself be liable at the 13.5% rate.

karangka

I agree with you Wolff.

VAT is never simple.

Plain white candles = 13.5%

Other candles = 21%

All thanks to this man!