# VAT - Wood Pellets



## chloe18 (3 March 2011)

The VAT office are onto companies that are selling wood pellets for horses with only 5% VAT.  Many equestrian retailers are doing this to keep prices down, but the VAT people are onto it and are going to check them all out and make them produce proof that all the customers have fuel pellet boilers!

Apparently everyone can be fined, and made to pay back all the correct VAT etc.

Eek !


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## Mike007 (3 March 2011)

It is not the buyers problem. The vendor is required to add on the correct rate of vat. The real problem is that animal bedding is not zero rated ,but should be. The same situation applys to straw.Feeding straw is zero rated but bedding straw carries 20% VAT. Anyone here paying vat on their straw? Ithink not!.Strangely enough ,in all the years I sold hay and straw,I never sold any bedding straw,not a single bale.


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## Jane_Lou (3 March 2011)

Whats bedding straw  Not that anyone has ever asked me if I am feeding it though!


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## Alain (4 March 2011)

Good I am glad the Vat people are looking into this matter and something is being done about it. As a retailer selling a whole range of horse bedding products every other product is at 20% and customers have to pay that level of tax.  We would all love to be charging 5% on our bedding products but it is not going to happen so it needs to be stopped with these fuel pellets!


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## Mike007 (4 March 2011)

Alain said:



			Good I am glad the Vat people are looking into this matter and something is being done about it. As a retailer selling a whole range of horse bedding products every other product is at 20% and customers have to pay that level of tax.  We would all love to be charging 5% on our bedding products but it is not going to happen so it needs to be stopped with these fuel pellets!
		
Click to expand...

And do you put 20% vat on straw?


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## thoroughlybred1 (4 March 2011)

How does that work if we use the pellets for bedding first, and then burn it as fuel on our wood burner?


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## chloe18 (9 March 2011)

As far as I can understand, a wood burner does not count as a heating/fuel source, unless it heats the whole house and the water etc. You have to have a certified wood pellet boiler. Its a confusing issue, but definately needs to be clarified.


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## Mike007 (9 March 2011)

A wood burner or even an open fire ,it doesnt matter, its only 5% vat even for logs.


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