"Charles Ellson" wrote in message

On Mon, 13 Jul 2009 23:53:57 +0200, "Willms"
wrote:

Am Mon, 13 Jul 2009 18:47:46 UTC, schrieb "Recliner"
auf uk.railway :

I have to charge VAT even on things
like reimbursed public transport fares
that are not themselves subject to VAT.

interesting. In Germany, different rates of VAT apply depending on
if its long distance (full rate, 19%) or regional which is supposed
to be a public service (lower rate, 7%).

Public transport in the UK is subject to VAT but at 0%:-
http://www.hmrc.gov.uk/vat/start/introduction.htm
which also has a paragraph "The difference between exempt and
zero-rated" although some of our resident VAT-handlers might be able
to improve on the explanation as the HMRC page does not really say
much about those who might "buy" at 0% but then have to charge their
own customers at a non-zero rate.

The point is that the travel by train or plane has a zero VAT rate, but
the service I bill my customer for has a standard VAT rate (currently
15%), regardless of the VAT rates on the inputs.