Tue Jan 14, 2020 1:15 pm #1740611
SpeedBrake wrote:CloudHound wrote:And zero rate VAT on training too.
As I understand it, that would mean that Flying Schools wouldn't be able to claim back their VAT on Fuel, Maintenance, Rent, and other expenses. If they're not charging VAT, they don't get the perks of claiming it back.
Therefore VAT on all of that is just included (hidden) in the price. So the only VAT a PPL student would actually save would be that on the markup / profit (and most likely the cost of the instructor's time)?
Don't get me wrong it saves some money, but wouldn't be an overnight 20% saving on PPL training.
I'm a long way from a VAT expert, but I don't think that this has to be the case. You can Zero Rate or Exempt a specific type of sale, but still claim back VAT - it's different to not being VAT registered.
I'm not saying that's how any of that would happen - I wonder how something like the food industry works it where specific things are exempt.
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