Petrol station franchise and VAT

Petrol station franchise and VAT

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Hi, does anyone act for a petrol station franchise as I need a little advice on the VAT side of things. Thanks.

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By DMGbus
25th Nov 2014 08:31

Out of date

My experience is probably out of date, here goes...

In the 1980's I dealt with the tax / VAT of two petrol stations.

Case 1: A "Jet" branded station where a commission was earned based on the volume of sales.  Registered for VAT, VAT accounted for on the commission, VAT recovered in (minimal) overhead expenses.

Case 2: A "Shell" branded station where the client paid rent to Shell and bought / sold the fuel from Shell.  Rent was based on turnover volume, ie. more sales meant more rent.  Quite a high turnover site from memory (over £2 million in the the 1980's as I recall).   Obviously registered for VAT.

 

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