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VAT on Water Utilities
We have just been informed by our water utility company that VAT on the water supply is only applicable to certain types of business/industry.
Looking at their website, it appears that only manufacturing industries should pay VAT – other types of business services (not sure if sign making is classified as manufacturing or business services) do not pay VAT on water supply to their premises.
Has any one come across this before that can advise?
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4 Replies
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I suggest you ring your water supplier and ask for a VAT declaration form. The answer I just got was that if you make a profit on the water you use then you are required to pay VAT.
I don’t really use water in the process of making a sign but of course it would be a part of the day to day expenses of running the business on which I make a profit.Steve
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quote Steve Morgan:I suggest you ring your water supplier and ask for a VAT declaration form. The answer I just got was that if you make a profit on the water you use then you are required to pay VAT.
I don’t really use water in the process of making a sign but of course it would be a part of the day to day expenses of running the business on which I make a profit.Steve
I’d say I don’t make a profit on the water I use. It’s an essential expense and I don’t mark up on the cost to me.
Neil
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quote NeilRoss:quote Steve Morgan:I suggest you ring your water supplier and ask for a VAT declaration form. The answer I just got was that if you make a profit on the water you use then you are required to pay VAT.
I don’t really use water in the process of making a sign but of course it would be a part of the day to day expenses of running the business on which I make a profit.Steve
I’d say I don’t make a profit on the water I use. It’s an essential expense and I don’t mark up on the cost to me.
Neil
I’d agree.
We don’t pay it on our bill but we are VAT registered anyway.
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Interesting
What SIC code did you specify?
Thanks
Andy
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