Birdseye
Well-known member
Been having a dispute with the boatyard who stored my boat over winter and who invoiced the minimal amount of electricity used at a vat rate of 20%. I have no reason to doubt that the yard sent this vat off in full to the taxman along with the excess vat on electricity to all their other customers. Whats really infuriating is that HMRC, who happily confirm that de minimis supplies ie less than 33kwh/day or 1000 kwh/month should be rated at 5% vat but wont contact the yard to tell them so unless I get the permission of the yard for HMRC to contact them. I quote form the jobsworths reply to my em,ail which only took a month or so.
" Thank you for your enquiry of 26 April 2014, regarding the VAT treatment of metered electricity charged by a boat yard. I refer you to Public Notice 742 'Land and property'. Sub-paragraph 11.7.6 of this publication details the treatment of electricity, lighting and heating when charged by a land owner (inc. marina).
If the boat yard operates a secondary meter, the charge will be standard-rated (20%) unless the fuel supplied is of a de-minimis quantity, in which case the supply will be subject to the reduced rate (5%). The de-minimis level is detailed in paragraph 5.2 of Public Notice 701/19 ?Fuel and power?, as follows:
'Supplies of not more than an average rate of 33 kilowatt hours per day - 1,000 kilowatt hours per month - of electricity to one customer at any one of the customer?s premises are subject to VAT at the reduced rate. This applies whether the bill is based on a meter reading - by either you or your customer - or on an estimate.'
It remains the responsibility of your supplier to ensure accurate assessment of their supply for the purposes of VAT. If your supplier charges you the incorrect rate of VAT, they must take the necessary corrective measures. HMRC we cannot get involved in any disagreement you may have with them. Instead, any such dispute should be treated as a civil matter, for which you may wish to seek legal advice. However, we can issue guidance to your supplier to help them determine the correct course of action. Before doing so, we would simply ask that you provide us with written authority from the third party, allowing us to approach them."
You can bet that the miserable **** ****** of HMRC would be only too happy to chase the yard if it was the other way round.
Anyway , for the benefit of others at other yards who may be confused the official guidelines can be found in para 5 of http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000510&propertyType=document#P20_1031
" Thank you for your enquiry of 26 April 2014, regarding the VAT treatment of metered electricity charged by a boat yard. I refer you to Public Notice 742 'Land and property'. Sub-paragraph 11.7.6 of this publication details the treatment of electricity, lighting and heating when charged by a land owner (inc. marina).
If the boat yard operates a secondary meter, the charge will be standard-rated (20%) unless the fuel supplied is of a de-minimis quantity, in which case the supply will be subject to the reduced rate (5%). The de-minimis level is detailed in paragraph 5.2 of Public Notice 701/19 ?Fuel and power?, as follows:
'Supplies of not more than an average rate of 33 kilowatt hours per day - 1,000 kilowatt hours per month - of electricity to one customer at any one of the customer?s premises are subject to VAT at the reduced rate. This applies whether the bill is based on a meter reading - by either you or your customer - or on an estimate.'
It remains the responsibility of your supplier to ensure accurate assessment of their supply for the purposes of VAT. If your supplier charges you the incorrect rate of VAT, they must take the necessary corrective measures. HMRC we cannot get involved in any disagreement you may have with them. Instead, any such dispute should be treated as a civil matter, for which you may wish to seek legal advice. However, we can issue guidance to your supplier to help them determine the correct course of action. Before doing so, we would simply ask that you provide us with written authority from the third party, allowing us to approach them."
You can bet that the miserable **** ****** of HMRC would be only too happy to chase the yard if it was the other way round.
Anyway , for the benefit of others at other yards who may be confused the official guidelines can be found in para 5 of http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000510&propertyType=document#P20_1031
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