In message , Recliner
writes

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.

15%? Isn't VAT 17.5%?
--
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