VAT on logs for resale.

[Abraham85]

I sell logs and order about 30 bags at a time from my supplier who charges me 20% .Should I be paying that much? I would buy this amount say every ten days in the winter season. I am a shop and registered for VAT.

 

[That Bates Girl]

The reduced rate of 5% only applies if they are being sold for domestic or "charity, non-business" use. See HMRC here.

So if they are selling to you B2B then 20% is correct. As you are VAT reg yourself, it shouldn't make much difference though, you can claim it back.

Lyds

 

[Abraham85]

Thanks, I sort of thought so but was not sure as I did not find it that clear on the Vat website, and its always best to check when money is involved.

 

[ksatish181]

selling to you B2B then 20% is correct.

 

[That Bates Girl]

selling to you B2B then 20% is correct.

You took the words right out of my mouth (literally)

Lyds