Vat rate question

S

scruff

Registered User
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I wonder can anybody help me with this little prob im having. Ive been selling small packaged bird seed the last month (just opened a shop) and also some 1L bottles of garden chemicals (fertilizer etc). I had presumed they were at standard 23% so ive been registering them on the till as such, but my invoice turned up today saying tax rate is 0% and i dont have to pay vat on the purchases of these products. I rang revenue and they said that yes, they are standard vat rated, so im lost. Any ideas on whats going on?

Cheers.
 
Business to business supplies from one EU state to another can be zero rated, where the purchaser provides their VAT number to the supplier.

It's then the responsibility of the purchaser of the goods to self-account for the VAT.

You do this by putting the appropriate amount of VAT on both sides of your VAT return.

You also need to complete box E2 to record the amount of your Intr-community acquisition.
 
bazermc said:
From looking at Revenue.ie Bird food seems to be zero rated

[broken link removed]

I wont always believe what Revenue say when you call them directly.
Click to expand...

From the link you posted above:

"However, bird food packaged, sold or otherwise designated for the use of cage birds is liable at the Standard rate."

You're right about taking what you're told with a pinch of salt but on this occasion the person on the phone was correct.
 
Hey thanks for that, just had a quick read and already making more sense. So i just declare a liability for the standard vat rate ive been charging for the products and it gets cancelled out? Im sure im getting that wrong, ill have a proper sit down and through that later. Its just a pan when these companies come with RRP, i can never tell were they are getting there prices from.

Thanks for the help, im new to business, finding it both exciting and head melting :)
 
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