VAT rate on electric

[volvopaul]

My yard has always charged firstly 15% when I moved here a year ago, then 17.5% from 1.1.2010.

I thought firstly that vat was 5% levy on say 13 per unit and the 5% went ot the revenue.

That was the charge at may last marina, shamrock quays mdl marina.

I am about to leave thsi marina, see another post, but want to challenge the owner when I get my final bill, and if im right I will get them to backdate the charges.

Im registered for vat, but if the marina is charging me the full rate and only sending 5% to the revenue, im being overcharged for my electric.

I know its not a lot of money but its the principal of the fact that the full rate is being charged on top of the 13p per unit charge.

They also increased the rate by 2p without informing me or any other berth holder, is that right just to up the charges without telling us.

Electric and gas companies have to inform clients of new charges as set out by the governing bodies.

As this is a marina does the usuall lapse in procedure apply? and they jus get away with whatever they feel like on a certain day.

Or does the overall picture that they are selling a service to supply electric to your boat then come under "services" and therefore the full vat rate applies.

I was also under the impression that no one can sell electric at higher rate than they pay for it from there supplier.

Seems to be popular this yard at the mo, but not for the right reasons!

 

[SpottyDog5]

I always understood, it was illegal to resell lecky for a profit, however they can make a "service charge" to maintain the the supply cables, meters etc...

 

[PaulGooch]

If it's the yard that's been intimated, their website states "Electricity charged at current rate plus service charge and VAT"

This is a tricky one too Paul, because VAT is 5% for domestic use and full rate for business use. As the marina is a business, i'd expect they pay full whack and pass that along, adding their "service charge", also plus VAT.

 

[splosh]

If it's the yard that's been intimated, their website states "Electricity charged at current rate plus service charge and VAT"

This is a tricky one too Paul, because VAT is 5% for domestic use and full rate for business use. As the marina is a business, i'd expect they pay full whack and pass that along, adding their "service charge", also plus VAT.

I see this as a commercial business and vat registered. I used to by my electric in bulk for my previous commercial business. The vat rate was 17.5% charged to me. I then sold this on to my tenants via their own sub meters. A few tenants raised the question regarding 5% also.
But, as I was supplying a service and basically selling the electric on to them (which is not illegal and you can charge whatever for each unit within reason) the rate of vat had to be the prevailing rate being 17.5%.

5% is for domestic so unfortunately you are on a loosing battle.

 

[mjf]

My yard has always charged firstly 15% when I moved here a year ago, then 17.5% from 1.1.2010.

I thought firstly that vat was 5% levy on say 13 per unit and the 5% went ot the revenue.

That was the charge at may last marina, shamrock quays mdl marina.

I am about to leave thsi marina, see another post, but want to challenge the owner when I get my final bill, and if im right I will get them to backdate the charges.

Im registered for vat, but if the marina is charging me the full rate and only sending 5% to the revenue, im being overcharged for my electric.

I know its not a lot of money but its the principal of the fact that the full rate is being charged on top of the 13p per unit charge.

They also increased the rate by 2p without informing me or any other berth holder, is that right just to up the charges without telling us.

Electric and gas companies have to inform clients of new charges as set out by the governing bodies.

As this is a marina does the usuall lapse in procedure apply? and they jus get away with whatever they feel like on a certain day.

Or does the overall picture that they are selling a service to supply electric to your boat then come under "services" and therefore the full vat rate applies.

I was also under the impression that no one can sell electric at higher rate than they pay for it from there supplier.

Seems to be popular this yard at the mo, but not for the right reasons!

I get charged 5% VAT on the energy and 17.5% VAT on the "facilities charge"


FWIW 7.5p / unit 0.0167p /unit "facilities charge"


All up cost to me is 9.84p / Kw Hr

 

[KevB]

Premier Marinas charge 5% VAT on electricity. See clicky CLICKY