How much VAT to charge on service using zero-rated supplies?

Micheal H

Hi all,

I provide some agricultural contracting services, one of which is lime spreading. The charge for this is €5/ton plus VAT @ 13.5% when the customer arranges to supply the lime themselves. Simple enough.

However, when I supply the lime I'm wondering what the correct charge should be? If, for example, the lime costs me €300 for 20 tons, should the total charge be:

a) Only charge on the service: 300 + ((5*20) * 13.5%) = 413.5
b) Charge VAT on entire amount: (300 + 100) * 13.5% = 454
c) Entire bill is zero rated: 300 + (5*20) = 400

I'm pretty sure it's all zero-rated, but just wanted to double-check. Tried ringing revenue but spent 20 minutes on hold, and getting passed around whenever I got through to someone. Thanks in advance.

Fedlot

Micheal H wrote: »

Hi all,

I provide some agricultural contracting services, one of which is lime spreading. The charge for this is €5/ton plus VAT @ 13.5% when the customer arranges to supply the lime themselves. Simple enough.

However, when I supply the lime I'm wondering what the correct charge should be? If, for example, the lime costs me €300 for 20 tons, should the total charge be:

a) Only charge on the service: 300 + ((5*20) * 13.5%) = 413.5
b) Charge VAT on entire amount: (300 + 100) * 13.5% = 454
c) Entire bill is zero rated: 300 + (5*20) = 400

I'm pretty sure it's all zero-rated, but just wanted to double-check. Tried ringing revenue but spent 20 minutes on hold, and getting passed around whenever I got through to someone. Thanks in advance.

The combined supply and spreading of zero rated fertilizers is liable at the zero rate.

Micheal H

Fedlot wrote: »

The combined supply and spreading of zero rated fertilizers is liable at the zero rate.

Thanks Fedlot, that's what I thought.