Small business water charges (Scotland)

[nicolaprestwick]

I have recently registered as a sole trader (upholsterer). I am only covering my outgoings (no profit yet) and non-VAT registered. I rent out a workshop and have been given a quote for water charges (charges are zero rated). Though it seems because I am non-VAT registered this quote is exc. VAT and will increase by 20%. I am in Scotland and the company is clear water business solutions.

Anyone shed some light on this, surely I am not the only non-VAT registered sole trader renting out space?
Very confused over this and what I should be paying.

Many thanks in advance
Nicola

 

[NickGrogan]

Nicola

Your VAT status reflects your ability to charge and reclaim VAT, not whether you're charged VAT or not. If you look at normal supplier invoices you should see VAT charges.

As the supplier is VAT registered, they will charge you VAT at the relevant rate. For most water supplies in Scotland this should be 0%.

If they are charging 20% on everything, something is not right.

PM me more details if you'd like to discuss.

Thanks

 

[Scalloway]

Acccording to Business Stream's website VAT is chargeable on water supplies to certain business sectors.

http://www.business-stream.co.uk/water-rates-charges/understanding-your-charges/vat-charges

 

[NickGrogan]

"VAT is chargeable on water supplies to certain business sectors."
"I have recently registered as a sole trader (upholsterer)."

Upholsterer not being one of them, should still be zero rated.

 

[FarrellMackennon]

The VAT applies quite stringently to all of us in the services trade and for me as an emergency plumber, we have to be quite careful about what costs we transfer to our customers when they ask - i.e. we can tell our customers what is chargeable or what is not in terms of the fees we've paid for rental and all the associated.. More importantly is to follow regulations and make sure that we manage our own costs and follow regulations...