Thread: VAT reduction
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Old 15-05-2009, 12:16   #3
Royboy39
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Re: VAT reduction

Quote:
Originally Posted by jaysay View Post
VAT has always been a fog to me, not being a businessman, I always thought that any one providing a service and are VAT registered, implement the tax, maybe some of our businessmen and women on here can enlighten us.
It is implemented.
If the cost of raw materials rise outside of VAT and the costs of sale rise then those expenses have to be covered to maintain profitability.
In the main caterers bo not pay VAT on Purchases (Food that is) but are liable for VAT at point of sale which is now 15%.
Extra profit, should this occur would be subject to a higher rate in Income Tax.
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Last edited by Royboy39; 15-05-2009 at 12:20.
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