15-05-2009, 16:31
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#4
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Resting in Peace
Join Date: Oct 2005
Location: In a state of confusion
Posts: 36,973
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Re: VAT reduction
Quote:
Originally Posted by Royboy39
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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Thank you Roy
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