Dodgy till receipt? Any VAT experts here?
Discussion
NinjaPower said:
This was just posted by someone local to me on Facebook.
It is till receipt from a local newsagents, one that I used to frequent myself on an almost daily basis.
Simple question: can anyone explain what is going on with the VAT here?
Not an expert, but I would say: It is till receipt from a local newsagents, one that I used to frequent myself on an almost daily basis.
Simple question: can anyone explain what is going on with the VAT here?
Food is zero rated, so doesn't attract vat.
The drink is standard rated, and the 0.80 is something else standard rated (presumably just keyed in to the till).
The 0.38 is the vat on those two items.
Mandat said:
No, just the customer, if they are charging for 4 items, when only 3 are being bought.
If anything, HMRC are getting VAT on the 4th item, which wasn't actually sold.
In which case both the customer and HMRC are being defrauded. The customer is being charged for items not bought (if that is the case) and HMRC are losing VAT (items sold which should attract VAT exceed the 80p overcharge). If anything, HMRC are getting VAT on the 4th item, which wasn't actually sold.
Alpinestars said:
Mandat said:
No, just the customer, if they are charging for 4 items, when only 3 are being bought.
If anything, HMRC are getting VAT on the 4th item, which wasn't actually sold.
In which case both the customer and HMRC are being defrauded. The customer is being charged for items not bought (if that is the case) and HMRC are losing VAT (items sold which should attract VAT exceed the 80p overcharge). If anything, HMRC are getting VAT on the 4th item, which wasn't actually sold.
Mandat said:
Er, surely HMRC are getting £0.13 more in VAT than is actually due, if the shop are charging VAT on the 4th item, which wasn't actually sold.
The point Eric made earlier is that the three items actually purchased are standard rated and so there were purchases of £2.65 subject to VAT at 20%, ie VAT of £0.53 should have been charged compared with the £0.38 actually charged, therefore HMRC are losing £0.15 of VAT on this transaction.As also stated earlier, VAT on the drink and miscellaneous item at 20% wouldn't add up to £0.38 either, so there's clearly an issue.
Edited by Lauryn on Sunday 26th June 10:04
Mandat said:
Er, surely HMRC are getting £0.13 more in VAT than is actually due, if the shop are charging VAT on the 4th item, which wasn't actually sold.
Customer should have been charged 2.65. Got charged 3.45. 80p out of pocket. HMRC should above got VAT on 2.65 (vat inclusive price) , ie 44p. HMRC got VAT of 38p. HMRC out of pocket by 6p.
Shopkeeper is 86p better off.
Lauryn said:
The point Eric made earlier is that the three items actually purchased are standard rated and so there were purchases of £2.65 subject to VAT at 20%, ie VAT of £0.53 should have been charged compared with the £0.38 actually charged, therefore HMRC are losing £0.15 of VAT on this transaction.
As also stated earlier, VAT on the drink and miscellaneous item at 20% wouldn't add up to £0.38 either, so there's clearly an issue.
Not quite. See above. As also stated earlier, VAT on the drink and miscellaneous item at 20% wouldn't add up to £0.38 either, so there's clearly an issue.
Edited by Lauryn on Sunday 26th June 10:04
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