Two thirds rule does not apply to car repairs by concessional treatment by Revenue.
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Yes, that was clear. The fact remains that they pay a lower VAT rate than they should for one of the three main revenue streams within their industry (the other two being selling cars and selling finance).The concessional treatment is for car repairs - not the sale of cars.
This treatment means car repairs will be subject to VAT at 13.5% rather than 23%. I think the reasoning is if the two thirds rule applied a lot of car repairs would be subject to 23% VAT as the parts would be more than 2/3rds of the value of the contract.
The fact remains that they pay a lower VAT rate than they should for one of the three main revenue streams within their industry (the other two being selling cars and selling finance).
The customer gets a lower bill. The State is out of pocket. VAT is a tax in business transactions so it amounts to a subsidy, just like the tourism sector.No they charge a lower VAT rate. It's their customers who pay it.
The customer gets a lower bill. The State is out of pocket. VAT is a tax in business transactions so it amounts to a subsidy, just like the tourism sector.
I'm in favour of low taxes but for everyone.
My invoice for car servicing gives an itemised breakdown of costs. I don't see why adding individual VAT rates would be an issue.The two-thirds rule is extremely messy to implement for relatively small transactions, and is generally counterproductive for consumer transactions. If it extended to motor repairs, it would incentivise and reward overcharging for labour.
My invoice for car servicing gives an itemised breakdown of costs. I don't see why adding individual VAT rates would be an issue.
Indeed. A supplier can't circumvent the two-thirds rule by selling goods below cost.The two third's rule refers to the cost of goods to the supplier, not the customer.
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