Can somebody please let me know if there is an easy to search list of VAT codes? I often get tied up in knots over Exempt and Non-vatable... for example - is Council Tax a not-vatable item, is it Exempt from VAT or is it outside the scope of VAT?
I would love a link where I can plug in a search term (like Council Tax) and it gives me the answer... hmm - a new business idea, perhaps or is it already out there?
Anyway, I digress... How does one find out easily?
Shelley
Oh yes, sadly sitting at my desk on this sunny saturday morning...
I must say, HMRC and Business Links aren't much help, but business rates, like MOTs come under 'Statutory Fees'. My list is as follows : Statutory Charges (licenses, taxes), Subs to trades unions and political parties), Gratuities, tips to individuals, Wages, Anyone who has exempt outputs only, Supplies to customer outside of UK, Supplies made free of charge (eg protective clothing), Fees & Honororaria paid to clergymen.
Will someone look up for me what 'Fortified Deposits & Cancellation Charges' are lol
Not 100% on this, without a bit more research but I believe it to be holding deposits that later convert into an income eg a deposit is taken for a concert booking but the ticket order is cancelled before full payment is received, the proprietor keeps the deposit but has made no supply (they have "fortified" the deposit).
Bill
Edit: Tad more research, shows the terminology appears a lot in traders standard terms and conditions for supplies and services that require a deposit
-- Edited by Wella on Saturday 23rd of July 2011 04:12:06 PM
You may ask your customers to pay a deposit when they hire goods from you to make sure they bring the item back safely. No tax point is created - and you don't have to account for VAT - if the deposit is either:
refunded in full to the customer when they return the goods safely
kept by you to compensate you for loss or damage
Forfeit deposits
If you ask your customer for a deposit against goods or services but they then don't buy them or use the services, you may decide to keep the deposit - usually you've told your customer about this in advance and it's part of the conditions for the sale. This is called a 'forfeit' deposit. For example, hotels often ask for a deposit against a room, and may keep part or all of the deposit if the customer doesn't turn up.
You should declare VAT on the deposit when you receive the payment or when you issue the VAT invoice, whichever happens first.
If you keep the deposit because your customer changes their mind about the goods or service and doesn't want them any more, there is no VAT due. If you have already declared it on your VAT return then you need to show it on the next one as an adjustment.
If I ever knew all that, i've forgotten. I'm still slightly surprised that it's a Non-VAT item, but there it is.
