VAT flat rate related - Relevant goods

[Entrepreneur88]

Hello all,

Inside the guide on VAT on the government’s website (VAT Notice 733):

In point ‘‘4.6 Relevant goods’’ They mentioned ‘‘Examples of relevant goods: gas and electricity used exclusively for your business’’

My questions are:

• Does this means that gas and electricity bills are allowed to be considered when I do the VAT Limited Cost Trader calculation?

• If so, I operate from a served office, so I receive one bill (not detailed) each month includes rent, electricity and gas. Can I calculate an estimated proportion by myself; for example £50 out of £500 (the monthly invoice)?

Many thanks in advance.

Adam

 

[@aiteoconsulting]

First question yes; re the second question, almost certainly no, though I would defer to greater than VAT experts than myself if they can point to the regs.

 

[STDFR33]

http://www.legislation.gov.uk/ukpga/1994/23/schedule/4
The supply of any form of power, heat, refrigeration or ventilation is a supply of goods.

The provision for a serviced office is a service, not goods. Yes, it includes gas and electric etc, but that is not the supply being made to you.

 

[Entrepreneur88]

Thank you for your help

 

[@aiteoconsulting]

The Accountancy Lab has just explained - posts have probably crossed. You are being provided with a service (ie a serviced office), not goods.

It is the serviced office provider, and not you, which is purchasing the goods (power & electricity).

 

[Entrepreneur88]

thank you, it is clear now

 

[@aiteoconsulting]

Great!