In the example shown at http://news.bbc.co.uk/1/shared/spl/hi/pop_ups/05/business_petrol_pricing/html/1.stm Is the VAT calculated on the Duty making the tax on a tax situation, like "car tax" on new vehicles used to be (and still maybe for all I know). -- Steve Parry K100RS SE & F650 and a 520i SE Touring for comfort (not forgetting the SK90PY) http://www.gwynfryn.co.uk
The VAT is shown as 13.4p which means that at 17.5% the VAT exclusive price is 76.6p; by a strange coincidence the costs cited for product, distribution and duty add up to 76.6p. By this definition the Government regard "fuel duty" as adding value and therefore subject to taxation through VAT.
Yes , the VAT is payable on the total price of the fuel at the pumps including the duty. As an aside plenty of people have been demanding a reduction in tax on fuel , in effect to keep the amount that the government receives static as the oil prices rise. I think they assume that the government is getting a big chunk of the recent rise , but the increase from 80p/litre to 95p/litre means that the government get an extra 2.1 pence per litre in revenue so if this were "handed back" it takes petrol prices back to about last wednesday's level. -- Alex Hermes: "We can't afford that! Especially not Zoidberg!" Zoidberg: "They took away my credit cards!" www.drzoidberg.co.uk www.ebayfaq.co.uk
