manxchatterbox Posted January 24, 2006 Share Posted January 24, 2006 can't find a thread on this and haven't heard it on the radio but think this means an end to the reduced rate... from the FT:- EU deadlocked over VAT rules By George Parker and Chris Smyth in Brussels Published: January 24 2006 20:10 | Last updated: January 24 2006 20:10 The European Union’s sales tax system was thrown into chaos on Tuesday night when three new EU members blocked a deal letting countries apply lower VAT rates to building work and other services. Unless Poland, the Czech Republic and Cyprus lift their veto by the end of the week, the European Commission says it will take legal action against any country which continues to apply the reduced rates. That could mean that the cost of home repairs, domestic care and even a haircut will rise sharply in some countries from the weekend, because of the legal uncertainty. full text link:-http://news.ft.com/cms/s/813d749a-8d14-11da-9daf-0000779e2340.html Link to comment Share on other sites More sharing options...
ans Posted January 24, 2006 Share Posted January 24, 2006 This is old news. The 5% VAT ends over here on the last day of this month. Link to comment Share on other sites More sharing options...
manxchatterbox Posted January 24, 2006 Author Share Posted January 24, 2006 "old news" au contraire - fact - the meeting was only held last night.....it must be speculation that's old.. Link to comment Share on other sites More sharing options...
ans Posted January 24, 2006 Share Posted January 24, 2006 I assure you, it's been known for quite some time. Link to comment Share on other sites More sharing options...
BigDave Posted January 25, 2006 Share Posted January 25, 2006 I heard about it in September. Just about anyone you go to who provides any sort of home improvement service (kitchens, bathrooms etc etc) tells you about it - especially if like me you were thinking of waiting a while before having some work done. I got my bathroom floor done before the end of the year for this very reason. It was actually due to expire on the 31st December '05 but was extended for one month afaik. Link to comment Share on other sites More sharing options...
The Old Git Posted January 25, 2006 Share Posted January 25, 2006 http://www.gov.im/treasury/customs/reducedrate.xml We supply some goods at 5% under this scheme and it is awkward not knowing what's going to happen Link to comment Share on other sites More sharing options...
jim Posted January 25, 2006 Share Posted January 25, 2006 I take it you can still claim back the vat on building materials bought before end of reduced rate period after it ends? Link to comment Share on other sites More sharing options...
BigDave Posted January 25, 2006 Share Posted January 25, 2006 I don't think it's something you claim back as the rate charged should be 5% in the first place. Link to comment Share on other sites More sharing options...
The Old Git Posted January 25, 2006 Share Posted January 25, 2006 As long as the 5% invoice is dated before 31 Jan I think you'd be OK In our case we have to supply and fit the items for the 5% rate to apply. If it's supply only then the rate is 17.5% If you're VAT registered and can claim VAT back then it probably doesn't matter too much if it's at 5% or 17.5% Link to comment Share on other sites More sharing options...
The Old Git Posted January 25, 2006 Share Posted January 25, 2006 http://www.gov.im/treasury/customs/reducedrate.xml has been updated since this morning I haven't looked up Annex K of Driective 77/378/EEC yet, but it seems as if the scheme might be able to be extended until the end of 2010 Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted January 25, 2006 Share Posted January 25, 2006 This relates to the harmonisation of taxes in the EU under the 6th VAT Directive. You can read more here if you really want. Cant find that exact annex as the search function on the site is down. Link to comment Share on other sites More sharing options...
manxchatterbox Posted January 31, 2006 Author Share Posted January 31, 2006 the manx radio station website currently says:- "It's likely the reduced rate of VAT for home improvements will be extended, for another five years. Although not formally confirmed, a statement from the latest meeting of European Finance Ministers says that "pending confirmation from the Czech Republic, Poland and Cyprus by the end of the week, the validity shall be extended from the first of January until December, 31, 2010". The Manx Treasury and Customs say they are monitoring the position. It's been stressed the move does not affect the 5% rate of VAT on holiday accommodation here, certain supplies of energy or other items under the heading "Construction Services". ...yet the Financial Times which is known as the most respected puveyor of factual information and which doesn't use conjecture to stimulate interest says:- Poland poised to veto deal on EU sales tax cuts By George Parker in Brussels Published: January 31 2006 02:00 | Last updated: January 31 2006 02:00 Poland was last night heading for a political clash with the rest of the European Union after signalling it would veto an agreement on an EU-wide regime for reduced rates of sales tax. The veto would throw into confusion Europe's value added tax system for certain services, and confirm that Poland's centre-right government is prepared to take on the rest of the EU to defend its national interest. Last night the Polish finance ministry said it retained its "negative position" towards a deal agreed by the 24 other member states to allow certain services to be subject to lower rates of VAT. the rest of the article is at:- http://news.ft.com/cms/s/811eb30e-91fe-11d...00779e2340.html which report do you believe is the moswt up to date? Link to comment Share on other sites More sharing options...
Gladys Posted January 31, 2006 Share Posted January 31, 2006 What's the problem? The matter is out of the IOM's hands anyway! I have just paid the first instalment on some building works with 5% VAT and would expect that the next instalments will carry the same rate as I contracted for the works during January. As I understand it, the reduced rate applies to the total work being carried out (therefore, the suppliers need to supply the contractors who will carry out the work) not just to the supplies. So supplies I buy would not be eligible to the 5% VAT rate, but they would if bought by the builder and then supplied as part of their contract. So no need to go out and corner the market in soffits! Link to comment Share on other sites More sharing options...
The Old Git Posted February 1, 2006 Share Posted February 1, 2006 What's the problem? We send estimates out on a daily basis. Should they be at 5% or 17.5%? That's a problem for me at the moment I have just paid the first instalment on some building works with 5% VAT and would expect that the next instalments will carry the same rate as I contracted for the works during January. My understanding is that it depends on invoice dates or payment dates. I haven't heard contract dates mentioned. For example, advice that we were given and passed onto our customers said that to definately qualify for the 5% VAT rate - i) A VAT invoice is issued to the customer for the full amount of the work before 31st January 2006 ii) The work is completed in full before 31st January 2006 and the invoice is issued before 14th February 2006 iii) Payment is received in full before 31st January 2006 It's 1st Feb today, what happens now? Link to comment Share on other sites More sharing options...
jim Posted February 1, 2006 Share Posted February 1, 2006 I've been keeping the recipts for all the materials used in the building of my house, when the work is finished I can submit them and will get the over paid amount of vat back. I did ring to check this was ok a month or so agoand was told that its fine the only thing is you can only submit one claim. Link to comment Share on other sites More sharing options...
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