I currently look after the books for a Marine company, they fuel the boat engines up for the customers ready to take out on the water, however much fuel they put in, we charge the customer the same, no charge added on top.
Someone has put a little doubt in my mind, but whatever the cost is of the fuel with the VAT, I am charging the customer the same wihth VAT, is this correct?
You can charge anything you want so long as you charge vat on it, but if the aim is not to make money on the fuel, sure charge the net amount they paid for the fuel plus vat on top.
VAT taxable turnover is applicable only if it is below a certain threshold. But then for fuel, VAT charged should be same as appropriate fuel scale charge. This is the common way of accounting output tax on fuel, according the HMRC
Income is taxable from £1 if you are VAT registered Sofia
If you are selling fuel then there are different rates dependant upon the type of fuel (i.e. red diesel) but the fuel scale charges are something completely different.
Rob has already given the perfect answer above and there did not need to be any follow up.
I am removing the link to your website as this feels like thinly disguised SEO.
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
