VAT on edibles

Collection of Waste Cooking Oil

Didn't find your answer?

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?

Replies (10)

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By Accountant A
30th Mar 2019 16:21

Ugur Saridas wrote:

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.

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RLI
By lionofludesch
30th Mar 2019 16:37

If it's no longer edible, it's not food any more.

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Replying to lionofludesch:
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By Accountant A
30th Mar 2019 16:39

lionofludesch wrote:

If it's no longer edible, it's not food any more.

Not for humans but ....

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Replying to Cheshire:
Psycho
By Wilson Philips
31st Mar 2019 11:49

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).

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By Ugur 1
30th Mar 2019 23:40

Thanks for the insight. I now have a clearer understanding of the logic. I always have difficulties finding and understanding information from the HMRC website, I did look there before I posted.

Someone I know is starting this business, so I'll advise him to charge VAT on the sale of the waste oil which will be used for recycling.

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Replying to Ugur 1:
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By Cheshire
31st Mar 2019 08:33

Starting in business as what?

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Replying to Ugur 1:
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By Cheshire
31st Mar 2019 08:52

duplicated

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By Matrix
31st Mar 2019 09:23

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.

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By Ugur 1
31st Mar 2019 10:49

The business will be collecting waste oil from businesses in exchange for clean oil. This waste cooking oil will then be sold onto other companies to start a recycle process.

His business is very likely to exceed the VAT threshold due to his customer base and of course at the start he'll even get a VAT refund, due to start up costs.

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