Tradesman - Price markup on parts
tim... wrote:
However perverse it sounds, charging VAT on top of a vat-able price for
products bought retail is the correct thing to do
useless he wants to risk getting caught at a VAT audit he will be passing
this VAT on, not pocketing it
Not really I don't think.
If the tradesman *isn't* VAT registered then he just charges the
customer what the item cost (including VAT) plus his markup, no
further added VAT.
If the tradesman *is* VAT registered and he has a VAT receipt from the
retailer where he bought the item then he claims back the VAT he's
paid and charges VAT on the sale of the item to the customer.
The net result for the customer is pretty much the same either way:-
Price (including VAT) + tradesman's markup
Price (ex VAT) + tradesman's markup + VAT
The resulting cost depends on how much the markup percentage is.
--
Chris Green
ยท
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