services 13.5% vat etc

blackgold>> · 17-02-2009 8:42pm #1

quick question.
I am a sole trader and i have a job tomorrow.
If i go to fix a guys laptop what way do i charge him.
Example i charge him 30 quid for my services and do i add on 13.5%vat onto that?
If so how much do i owe the taxman then.
Hope it's clear.
thanks

Mr. Presentable · 17-02-2009 8:45pm

Add on the 13.5% VAT. You then owe the Revenue €4.05

blackgold>> · 17-02-2009 9:03pm

Ok so do i charge the guy 34.05 so for my services and then give the 4.05 to revenue?

Mr. Presentable · 17-02-2009 9:09pm

Normally when dealing in the trade prices are assumed ex-vat. Dealing with the public it usually has to be expressed. If it's some non trade type you are working for it might be he expects the 30.00 to include VAT, if he has considered it at all.

But to answer your question, typically you keep the 30.00 and revenue get the rest.

blackgold>> · 17-02-2009 9:51pm

My trade is computer repairs (technician). most of them jobs are dealing with the public. I understand now what you said which is great. Another thing what if i bought a computer part from germany and installed into into his computer?
Do i charge him 21.5%vat ?

maddogcollins · 17-02-2009 10:10pm

A transaction may appear to be supply if service but is actually a supply of goods, if the value if the goods (i.e cost excluding VAT) to you exceeds 2/3 of the total charge.

e.g: VAT Excl cost of material is €120, total charge excl of VAT is €150, the 21.5% rate is applicable.

This is known as the 2/3 rule.

Hope this helps.

services 13.5% vat etc

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