Home Page
   Articles
       links
About Us    
Traders        
Recipes            
Latest Articles
VAT rise on energy saving products
Page 1, 2  Next
 
Post new topic   Reply to topic    Downsizer Forum Index -> Energy Efficiency and Construction/Major Projects
Author 
 Message
Treacodactyl
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 25697
Location: Jumping on the bandwagon of opportunism
PostPosted: Sat Jun 06, 15 6:24 am    Post subject: VAT rise on energy saving products  Reply with quote    

EU rules the UKs reduced VAT rate on things like solar panels, insulation etc is illegal and it should be 20%.

http://www.telegraph.co.uk/news/earth/energy/11652827/Households-must-pay-higher-VAT-on-insulation-and-solar-panels-EU-rules.html

Anyone know if this is true? For some reason it's in the right of centre press but not the left (The Guardian, BBC etc). Is it a scare story or are some ignoring it?

Mistress Rose



Joined: 21 Jul 2011
Posts: 10467

PostPosted: Sat Jun 06, 15 6:51 am    Post subject: Reply with quote    

Whichever the answer is, the press are going to have to backpedal on the anti-EU things sooner or later if the PM decided he has done enough 'renegotiation' to make it worth while for the UK to stay in Europe. Of course Scotland, Wales and Northern Ireland may decide to anyway, which would just leave England to have to go along with the referendum because we don't have out own parliament. Of course if we did, we might have the funny situation where the PM pulled out, but all the countries in the UK stayed in. Amusing.

Falstaff



Joined: 27 May 2009
Posts: 1014

PostPosted: Sat Jun 06, 15 9:26 am    Post subject: Reply with quote    

"........... Roger Helmer, Ukip's energy spokesman, said the ECJ ruling was "simply ridiculous beyond belief".

"While the EU claims it wants to reduce energy consumption, this judgement shows what the EU ‘really really wants’ is to increase its take from the VAT system from which it takes a portion of every transaction," he said. .........."


I didn't know the EU gets a lump of our VAT payments !

Nick



Joined: 02 Nov 2004
Posts: 33978
Location: Hereford
PostPosted: Sat Jun 06, 15 9:43 am    Post subject: Reply with quote    

Yep, about a third of one percent. And we then get two thirds of it back via the rebate.

Falstaff



Joined: 27 May 2009
Posts: 1014

PostPosted: Sat Jun 06, 15 10:01 am    Post subject: Reply with quote    

Where are you getting those numbers from ?

Nick



Joined: 02 Nov 2004
Posts: 33978
Location: Hereford
PostPosted: Sat Jun 06, 15 9:57 pm    Post subject: Reply with quote    

http://ec.europa.eu/budget/revexp/revenue_and_expenditure_files/data/revenue_and_expenditure_en.xls


Mistress Rose



Joined: 21 Jul 2011
Posts: 10467

PostPosted: Sun Jun 07, 15 6:07 am    Post subject: Reply with quote    

As far as I know, the EU can say something should have VAT on it, but it is the individual countries that fix the rates. If the UK government want to fix the VAT rate at 0 or 1%, I think they can. Do the EU get a direct cut anyway? I thought each government paid an agreed amount, which has to come through taxation of all sorts, then it gives the money out in grants, rebates and other forms.

Nick



Joined: 02 Nov 2004
Posts: 33978
Location: Hereford
PostPosted: Sun Jun 07, 15 7:48 am    Post subject: Reply with quote    

No. The EU mandates vat at a minimum level of 15%, but allows a few goods or services to be at a lower rate. A zero rate is allowed by derogation for relatively few items in the UK. If we ever raise this, it cannot then be reduced back down.

A country's contribution is made of several parts, one of which is a direct cut of vat receipts. For us, it's currently 0.33%.

Vat based revenue makes up about 20% of what we pay into the EU.

Ty Gwyn



Joined: 22 Sep 2010
Posts: 4192
Location: Lampeter
PostPosted: Sun Jun 07, 15 8:18 am    Post subject: Reply with quote    

Considering most businesses claim back their VAT,then the 20% is made up by the non business public.

Behemoth



Joined: 01 Dec 2004
Posts: 19023
Location: Leeds
PostPosted: Sun Jun 07, 15 9:30 am    Post subject: Reply with quote    

That's how vat works, the end consumer pays, not the supply chain.

vegplot



Joined: 19 Apr 2007
Posts: 21298
Location: Ynys Môn
PostPosted: Sun Jun 07, 15 9:55 am    Post subject: Reply with quote    

Ty Gwyn wrote:
Considering most businesses claim back their VAT,then the 20% is made up by the non business public.


It's the end consumer that pays. Businesses collect the tax.

Ty Gwyn



Joined: 22 Sep 2010
Posts: 4192
Location: Lampeter
PostPosted: Sun Jun 07, 15 10:17 am    Post subject: Reply with quote    

vegplot wrote:
Ty Gwyn wrote:
Considering most businesses claim back their VAT,then the 20% is made up by the non business public.


It's the end consumer that pays. Businesses collect the tax.



Or claim back as in Farming,a zero rated business

Nick



Joined: 02 Nov 2004
Posts: 33978
Location: Hereford
PostPosted: Sun Jun 07, 15 10:22 am    Post subject: Reply with quote    

Ty Gwyn wrote:
Considering most businesses claim back their VAT,then the 20% is made up by the non business public.


Fag packet calculation suggests it's about £23 per person, annually, on average, and massively weighted in favour of the poorest.

Mistress Rose



Joined: 21 Jul 2011
Posts: 10467

PostPosted: Mon Jun 08, 15 6:39 am    Post subject: Reply with quote    

I didn't realise that Nick. Thanks.

What sort of things can you claim back for as a farmer Ty Gwyn? In our case we are not VAT registered so our business has to absorb the VAT, although it is included in the cost to the customer, just not as a separate item.

Ty Gwyn



Joined: 22 Sep 2010
Posts: 4192
Location: Lampeter
PostPosted: Mon Jun 08, 15 8:03 am    Post subject: Reply with quote    

Vat on all your purchases into the business basically,ie.machinery and repairs,contractors labour,,fencing materials,red diesel,and fuel associated with the business,building materials,working cloths.
Everything that comes into the business.

Post new topic   Reply to topic    Downsizer Forum Index -> Energy Efficiency and Construction/Major Projects All times are GMT
Page 1, 2  Next
Page 1 of 2
View Latest Posts View Latest Posts

 

Archive
Powered by php-BB © 2001, 2005 php-BB Group
Style by marsjupiter.com, released under GNU (GNU/GPL) license.
Copyright © 2004 marsjupiter.com