The 2/3rd rule according to the revenue site is applied depending on "the VAT-exclusive cost of goods used in the provision of a service etc..."
I have two queries on this which I would welcome comments on.
1) Do they mean the purchase cost or the selling cost ?
2) If I am selling an instrument and I instal it at a separate charge, which is a service, does this come under the two-thirds rule ? I thought not, as I am selling an instrument rather than providing a service, and the service is ancillary to the sale of the instrument, but it has been suggested to me that I am wrong.
Any comments really welcome.
thanks in advance
I have two queries on this which I would welcome comments on.
1) Do they mean the purchase cost or the selling cost ?
2) If I am selling an instrument and I instal it at a separate charge, which is a service, does this come under the two-thirds rule ? I thought not, as I am selling an instrument rather than providing a service, and the service is ancillary to the sale of the instrument, but it has been suggested to me that I am wrong.
Any comments really welcome.
thanks in advance