§ Mr. Fauldsasked the Chancellor of the Exchequer whether the buyer's premium charged by certain auctioneers is subject to VAT.
§ Mr. Robert SheldonThe buyer's premium is regarded as part of the consideration for the goods and is dealt with for VAT purposes in the same way as the goods themselves. If they are sold on behalf of an unregistered person, no VAT is chargeable, but if on behalf of a taxable person, the buyer's premium bears VAT in the same way as the goods.
§ Mr. Fauldsasked the Chancellor of the Exchequer whether for the purposes of VAT he will treat auctioneer's buyer's premiums and dealer's commissions in an identical manner.
§ Mr. Robert SheldonA dealer's commission is the charge he makes for the supply of his services to the seller whereas an auctioneer's buyer's premium is treated as part of the consideration for the goods rather than for the supply of the auctioneer's services. A buyer's premium is therefore dealt with for VAT purposes in the same way as the goods concerned.
§ Mr. Kenneth Clarkeasked the Chancellor of the Exchequer why it is proposed that hot dogs sold from a stall or mobile van in the street should be zero rated for VAT, but ice cream sold from an identical stall or mobile van should not.
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§ Mr. Robert SheldonHot dogs supplied from a street stall or mobile van for consumption elsewhere fall within the zero rating provisions for food. Ice cream, however supplied, is specifically excluded from these provisions.
§ Mr. Kenneth Clarkeasked the Chancellor of the Exchequer what was the estimated cost to public funds of distributing VAT News Number 13 to all registered traders.
§ Mr. Robert SheldonVAT News Number 13 was distributed with a supplement to Notice Number 701 and the total distribution cost was just under £170,000. Printing and papers costs for VAT News Number 13 amounted to £58,000.