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Retailer charges customer for takeaway food incl delivery charge. Does he return VAT on the income & claim VAT on the delivery invoice or treat as zero on till and pass it on to delivery company who are VAT registered and provide invoice

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Posted by (Questions: 46, Answers: 16)
Asked on 31 March 2020 2:47 pm
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Very clear, thank you Alan
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Posted by (Questions: 46, Answers: 16)
Answered on 1 April 2020 10:34 am
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The standard rate applies to courier services and haulage (or “cartage”), i.e., transport of goods. This includes delivery charge for take-away food: VATCA 2010 s 46(1)(a) He is accountable for VAT on the delivery element of the supply and he can take an input credit for the charge from the delivery company. Example: hot food costs €100 inclusive of VAT - hot food is €90 and delivery is €10; the hot food includes VAT at 13.5% so the VAT is (13.5/113.5) * €90 which is €10.70. The delivery charge includes VAT at 23% so the VAT is (23/123) * €10 which is €1.86. It is a multiple supply, not a composite supply.
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Answered on 1 April 2020 10:27 am