Quick question on strange VAT rate

muffler

Have any of you ever heard of a 15% VAT rate? It is alleged that a fast food take away is charging this rate and Im curious as to whether such a rate exists or not.

Cheers.

barneystinson

muffler wrote: »

Have any of you ever heard of a 15% VAT rate? It is alleged that a fast food take away is charging this rate and Im curious as to whether such a rate exists or not.

Cheers.

No, there's no such rate. The rate of VAT on fast food is 13.5% (and the rate on soft drinks is 21%).

Although, if they are charging 15% VAT, then they owe that amount to Revenue...

smokiebeverage

I'm not sure here but I think I remember someone telling me that the 15% rate was applied under special cases for some of the larger chains, It has something to do with some of their stock being at 21%, some at 13.5% and some at 0% so to make it less complicated revenue set a rate for them at 15%. I think you see it on McDonalds receipts. Not that I ever dine there!

muffler

smokiebeverage wrote: »

I think you see it on McDonalds receipts. Not that I ever dine there!

It is indeed that I refer to. I have a post that I have unapproved for now whereby the poster claimed that it had to do with the amount of meat (or lack of). I **** kid you not

smokiebeverage

I think I've seen the breakdown somewhere and that it has something to do with kids meals having no VAT or something weird like that, but I can't be sure. The answer must be out there somewhere but I reckon you'd need a real TAX expert, I'm only winging it from a very vague memory!

smokiebeverage

muffler wrote: »

I have a post that I have unapproved for now whereby the poster claimed that it had to do with the amount of meat (or lack of).

If this was an After Hours thread I'd have a great response for that!

muffler

smokiebeverage wrote: »

I think I've seen the breakdown somewhere and that it has something to do with kids meals having no VAT or something weird like that, but I can't be sure. The answer must be out there somewhere but I reckon you'd need a real TAX expert, I'm only winging it from a very vague memory!

When the thread was opened I checked the VAT rates on revenue.ie but could not see a 15% rate. Thats not to say that its not there as it was more a cursory glance through the rates.

smokiebeverage wrote: »

If this was an After Hours thread I'd have a great response for that!

If it was an after hours thread I wouldn't be posting here

smokiebeverage

I doubt its an official VAT rate, it most likely is a deal that was made directly with McDonalds to produce an average VAT rate. Most likely because they sell large volume but small value, it would be a nightmare to audit.

Victor

smokiebeverage wrote: »

I'm not sure here but I think I remember someone telling me that the 15% rate was applied under special cases for some of the larger chains, It has something to do with some of their stock being at 21%, some at 13.5% and some at 0% so to make it less complicated revenue set a rate for them at 15%. I think you see it on McDonalds receipts. Not that I ever dine there!

A McDonalds meal can be interpreted as a restaurant meal / meals ready to eat which have a specific rate.

As all McDonalds sales are recorded on a computerised till, the exact breakdown is readily determinable.

I strongly suspect the person has misinterpreted the data and it just so happens that one specific transaction came out at 15%.

I'm not sure what the revenue's position is regarding the sale of say milk (normally 0% in a shop) as part of a restaurant meal. However, in circumstances where it is difficult to determine the exact VAT rate on the sale price of a product, e.g.a shop that carries thousands of lines, there is a scheme for calculating VAT based on inputs rather than sales.

barneystinson

Victor wrote: »

A McDonalds meal can be interpreted as a restaurant meal / meals ready to eat which have a specific rate.

As all McDonalds sales are recorded on a computerised till, the exact breakdown is readily determinable.

I strongly suspect the person has misinterpreted the data and it just so happens that one specific transaction came out at 15%.

I'm not sure what the revenue's position is regarding the sale of say milk (normally 0% in a shop) as part of a restaurant meal. However, in circumstances where it is difficult to determine the exact VAT rate on the sale price of a product, e.g.a shop that carries thousands of lines, there is a scheme for calculating VAT based on inputs rather than sales.

If anyone else is having trouble sleeping, it's all laid out here:

"Composite Meal Packages - VAT"
http://www.revenue.ie/en/practitioner/tax-briefing/archive/63/tb03.htm

The drink in a McDonalds meal has VAT at 21%, the hot food has VAT at 13.5% so the average when you look at the VAT on the receipt may will be 15%.

(On a side note I hope this hasn't come to someone's attention in the course of writing up a purchases book for VAT purposes - because you can't claim an input credit for food/drink!)

muffler

barneystinson wrote: »

If anyone else is having trouble sleeping, it's all laid out here:

"Composite Meal Packages - VAT"
http://www.revenue.ie/en/practitioner/tax-briefing/archive/63/tb03.htm

The drink in a McDonalds meal has VAT at 21%, the hot food has VAT at 13.5% so the average when you look at the VAT on the receipt may will be 15%.

(On a side note I hope this hasn't come to someone's attention in the course of writing up a purchases book for VAT purposes - because you can't claim an input credit for food/drink!)

That appears to solve the mystery.

Many thanks to all for their input

BOHSBOHS

the "vat@15%" is just an indicator that the composite thing is being used
the amount shown probably wont be 15% of the total but is instead the sum of the vat amounts charged at diff rates to the individual products in the meal.