VAT on the NCT

Flatzie_poo

Hey got my NCT in January and when I was looking at my receipt it said VAT@21.5%...

Should this not be 13.5% or whatever it is for a service?
Just curious to know how they can charge the extra dosh at the rate they charge on goods, when i'd consider it a service!

Any help appreciated!

cormie

Saw the exact same on my DOE receipt today aswell! The fee is a fixed fee by all testing outlets as far as I'm aware so there must be something that forces it to be 21.5% instead of the 13.5. Curious as to what though!

nesf

13.5% is the rate charged for the sale of products or services to a company or entity that isn't the final customer in the "chain". An example: say I'm a repairman. A shop in town gets items for people and then sub-contracts the work to me. 13.5% is the rate of VAT I charge them because they aren't the final customer.

21.5% is the rate charged for said sales to the final customer. Since you're the final customer this is the rate that will be charged. An example: this is the rate the repairman would charge a customer that was dealing with them directly.


A longer and more complete explanation is here: http://www.revenue.ie/en/tax/vat/index.html

thetyreman

Flatzie_poo wrote: »

Hey got my NCT in January and when I was looking at my receipt it said VAT@21.5%...

Should this not be 13.5% or whatever it is for a service?
Just curious to know how they can charge the extra dosh at the rate they charge on goods, when i'd consider it a service!

Any help appreciated!

Dont forget its not the NCT that get to keep it,its the Goverment,the NCT are just acting as tax collectors for the langers..........

Thoie

nesf wrote: »

13.5% is the rate charged for the sale of products or services to a company or entity that isn't the final customer in the "chain".

That's not it.

A final consumer can and does receive services at the 13.5% rate. For example, if I get my car serviced, the parts are charged @ 21%, but the labour is charged at 13.5%.

Goods and services which attract VAT at 13.5% include certain fuels, building services, newspapers, magazines and periodicals, repair, cleaning and maintenance services generally, holiday accommodation,
certain photographic supplies, restaurant services, and provision of commercial sporting facilities.
Full details are contained in Appendix C. The 13.5% rate also applies to goods listed in Appendix G suppliedin circumstances specified in section 11 (1AA) of the VAT Act.

From the Vat Guide.

leeroybrown

There are hundreds of individual VAT rates payable at one of the designated rates. Some are quite general and others (such as the NCT) are very specific.

Thoie

leeroybrown wrote: »

There are hundreds of individual VAT rates payable at one of the designated rates. Some are quite general and others (such as the NCT) are very specific.

I love that list - you learn things such as "Lapdancing - admissions" attract VAT at 13.5% because a live performance is included.

nesf

Thoie wrote: »

That's not it.

A final consumer can and does receive services at the 13.5% rate. For example, if I get my car serviced, the parts are charged @ 21%, but the labour is charged at 13.5%.



From the Vat Guide.

Hmm, I stand corrected then. All my accounting/tax experience is business to business. I'm used to dealing with 13.5% B2B, 21.5% final customer stuff.