Sage-Tips

Is there VAT on bus tickets?

Bus fares. No – like train tickets and most public transport costs, bus fares are zero-rated for VAT so you can’t reclaim anything on them.

Is public transport exempt from VAT?

Section 12(g) of the VAT Act exempts from VAT the supply by any person in the course of a transport business of any services comprising the transport by that person in a vehicle operated by him of fare-paying passengers and their personal effects by road or railway.

Do you pay VAT on transport?

Your supply is zero-rated to the extent that the transport takes place in the UK. The rest of the journey is outside the scope of UK VAT (see paragraph 3.2). The payment of import duty is a disbursement and is outside the scope of VAT (see paragraph 10.4).

Is travel zero rated or no VAT?

Passenger transport that takes place both inside and outside the UK is zero-rated to the extent the transport takes place within the UK, irrespective of the carrying capacity of the vehicle, ship or aircraft.

Can you claim tax back on bus tickets?

Tickets: If you are travelling exclusively for business purposes, then any aeroplane, train or bus tickets can be used and they are all tax deductible.

Can you claim VAT back on travel expenses?

You can reclaim VAT on employee travel expenses for business trips, including meals and accommodation that you pay for. You cannot reclaim VAT if you pay your employees a flat rate for expenses. You cannot reclaim VAT on entertainment costs. …

What items are exempt from VAT?

Items that are VAT exempt in the UK

• Some food and drink. Most food and drink for human consumption is VAT exempt, but there are some important exceptions.
• Children’s clothes.
• Publications.
• Some medical supplies and equipment.
• Charity shop goods.
• Antiques.
• Some admission charges.
• Gambling.

What are VAT exempt transactions?

Exempt transactions include, among others, certain residential sales or leases; educational services; employment; services rendered by regional or area headquarters established in the Philippines by multinational corporations that act as supervisory, communications and coordinating centers for their affiliates.

Can you claim VAT on travel?

Generally you can reclaim VAT on employee travel and subsistence expenses such as travel, meals and accommodation if you pay for those costs in part or in full. You cannot reclaim VAT on travel and subsistence expenses when you pay an employee a flat rate for subsistence expenses.

Do I pay tax on travel expenses?

Travel expenses are only allowable for tax purposes if: You have to make the journeys in the performance of the duties of your employment (this may apply where the duties themselves inherently involve travelling such as a delivery driver or meter reader); or.

Is a travel pass a benefit in kind?

Travel passes can include bus, train, Luas and ferry services. This is not a benefit-in-kind. Your employee must pay Income Tax (IT), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on this benefit.

Can you claim VAT back on commercial vehicles?

If you are buying a commercial vehicle for your business you can normally reclaim the VAT in full. However, if the vehicle has a dual purpose and there is significant private use, there will be a restriction on the input tax that can be reclaimed.

Can a bus be used to supply VAT exempt transport?

If the transport is provided to the employees free of charge, the bus would not be used to supply VAT exempt transport to fare-paying passengers, and the VAT vendor will be entitled to an input tax deduction in respect of the acquisition of the bus.

What is the standard rate of VAT for transport?

Such means of transport shall therefore be subject to the standard rate of VAT. This denotes that, any supplies of means of transport (eg supply of buses) made for the use of schools or business are subject to 5\% tax at the time of its purchase.

What is VAT liability for passenger transport?

3.2 The VAT liability of passenger transport that takes place both inside and outside the UK. Passenger transport that takes place both inside and outside the UK is zero-rated to the extent the transport takes place within the UK, irrespective of the carrying capacity of the vehicle, ship or aircraft.

When do you have to charge VAT on goods and services?

A list of goods and services showing which rates of VAT apply and which items are exempt or outside the scope of VAT. If you’re registered, you have to charge VAT when you make taxable supplies. What qualifies and the VAT rate you charge depends on the type of goods or services you provide.