vat query

1eg0a3xv7b82of

i started working in accounts just recently.
a supplier invoiced us baby blankets at vat 0%, i had read somewhere that baby clothing 0% but baby blankets 23%. I asked revenue and they said 23% on baby blankets.
BUT the supplier refuses to believe this when i rang them.

what do i do here. is there an onus on me to report this supplier, should i refuse payment until we have a correct invoice, or just pay the invoice as is and charge 23% when we re sell.

thanks.

viztopia

If the supplier is charging you no vat then you have no concerns here. I would only be concerned if he were charging you vat in a case where he shouldn't and then you doing something wrong if you claimed this back. If you believe that vat is applicable then make sure you include it in any sales invoices but this is your main responsibility.

Bella Refined Plastic wrote: »

i started working in accounts just recently.
a supplier invoiced us baby blankets at vat 0%, i had read somewhere that baby clothing 0% but baby blankets 23%. I asked revenue and they said 23% on baby blankets.
BUT the supplier refuses to believe this when i rang them.

what do i do here. is there an onus on me to report this supplier, should i refuse payment until we have a correct invoice, or just pay the invoice as is and charge 23% when we re sell.

thanks.

Gard1

Bella Refined Plastic wrote: »

i started working in accounts just recently.
a supplier invoiced us baby blankets at vat 0%, i had read somewhere that baby clothing 0% but baby blankets 23%. I asked revenue and they said 23% on baby blankets.
BUT the supplier refuses to believe this when i rang them.

what do i do here. is there an onus on me to report this supplier, should i refuse payment until we have a correct invoice, or just pay the invoice as is and charge 23% when we re sell.

thanks.

Schedule 2 of the Vat act 2010 states that 0 rate applies to articles of clothing of sizes appropriate to a child of 10 but it excludes articles of clothing not described marketed labelled or marked on basis of size or age..

It is up to the supplier to interpret this act in whatever way it wants, however this may not be the interpretation of revenue.
If the blankets are sold with the correct labeling, then this could be argued that this is meeting the above requirements.
I assume the company you are working for is vat registered so regardless of whether they charge you vat or not the garments have the same net cost of sales. If you feel that 23% is the appropriate rate when you resell you have yourself covered but possible margin will be reduced by 23% assuming same rrp regardless of vat rate!

1eg0a3xv7b82of

Gard1 wrote: »

Schedule 2 of the Vat act 2010 states that 0 rate applies to articles of clothing of sizes appropriate to a child of 10 but it excludes articles of clothing not described marketed labelled or marked on basis of size or age..

It is up to the supplier to interpret this act in whatever way it wants, however this may not be the interpretation of revenue.
If the blankets are sold with the correct labeling, then this could be argued that this is meeting the above requirements.
I assume the company you are working for is vat registered so regardless of whether they charge you vat or not the garments have the same net cost of sales. If you feel that 23% is the appropriate rate when you resell you have yourself covered but possible margin will be reduced by 23% assuming same rrp regardless of vat rate!

cheers for the replies, I contacted revenue and they said its 23% on baby blankets and it specifically says on there website.
So I checked Revenues Index to VAT Decisions and it does say baby blankets, throws 23%.
We do have audits at my workplace, so I will charge 23% on re sell.
Have made a note of my decision and the audit accountants can decide what happens from here.

Cheers for the help