I have looked through the forum to find an answer to my question, but I failed to find one. If there is please post a link to me and I apologies in advance.
Basically, my question is if there is VAT on selling waste cooking oil (mainly from restaurants), to be recycled.
I'm aware there isn't VAT on cooking oil when restaurants buy them, but for some reason after reading through many confusing information online I understand that there is VAT for the sale of oil to be recycled. Is this correct?
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after reading through many confusing information online I understand that there is VAT for the sale of oil to be recycled.
I don't know what you are reading but the obvious place to look is VAT Notice 701/14 which gives you the answer.
I can understand the questioner’s confusion, since that guidance seems to directly contradict the VAT Notice. 701/15 indicates that waste oil from, eg, a fish and chip shop can in fact be used in animal feed (although if it requires processing it will be standard-rated).
There is only VAT (as advised above, I have not researched it) if the business is registered for VAT. The business is only required to register for VAT once its taxable supplies reach the VAT threshold, whether it is worthwhile registering before then is a matter for the new business owner to discuss with their accountant.