VAT on work performed

doberden

Registered User
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414
Hi,

I sell gardening products privately but there's some installation required. I charge from 100 to 400 euro per installation. Do I need to charge VAT on the installation and if so what rate?

Thanks,
 
AFAIK, installation would be regarded as a 'consultation/service' and would therefore be chargeable at 21% VAT.

Repairs, if appropriate to your work, would be 13.5%.
 
Are you registered for VAT already?

If not, registration thresholds are €35,000 pa for services and €70,000 pa sales of goods. For the higher threshold to apply 90% of sales must comprise sale of goods. Therefore if yuour sales come 50% from goods and 50% from services then the lower threshold applies.

Where you are registered and service and supply of goods applies then the higher (21%) rate applies if the value of the goods comprised in the total charge exceeds 2/3 rds of the total charge to the customer ( the two-thirds rule) , otherwise the lower (13.5%) rate may be used.

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Generally if you are talking about high value items with a small installation charge, it will be 21%. However it is open to the trader to charge separately 21% for the goods and 13.5% for the service as two transactions.
 
Hi, yes registered for VAT because I will be selling some equipment to businesses also. Thanks for your replies.
 
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