EU to tax vapes like tobacco

[Mawsley]

Naahhhh - you/we are most likely paying 20% VAT on most vaping stuff purchased in UK I reckon
than the possible 5% reduced rate that could/should apply to some products

I saw somewhere that nicotine replacement patches are zero rated
but seems that applies to stuff on prescription - eg: basic starter kit from NHS
(even though when I asked about gum/patches to my doctor he refused to help - cunt
said he thought I was unlikely to succeed giving up - fuck you cunt, all that tax I've paid on fags)

I would guess most stuff in UK just charges 20% VAT across the board
to save hassle of different rates on different products eg:
flavourings will likely be 20%, but nicotine e-juice might be 5%
(so what about zero nic juice - where might that fall)

I'm still saving money hand over fist compared to the money AND TAX/DUTY I was paying on stinkies

However - when people spunking a fair bit of money on Nicorette, that inflated price is only 5% VAT
so the big Pharma are raking in even more money that we first thought perhaps
(ie: rrp not inclusive of 20% VAT but only 5% for patches made of gold dust - jeeez greedy cunts)

Starter kits starter kits are free from most County smoking cessation services tho

 

[LordOdin]

It's funny because my Doctor knew i wanted to quit but refused to prescribe anything, i had to be dying in hospital before i was prescribed patches and a Nic Inhaler which was useless imho though i suppose it must of stopped me climbing the walls while on it.

 

[Max11]

Surprised they didn’t do it ages ago the scumbags

 

[Fuctifino]

Starter kits starter kits are free from most County smoking cessation services tho

Guess it depends also if you get nicotine replacement products on prescription
if you get free prescriptions or if you pay for them - but still VAT free

I guess the VAT free vaping is for prescribed items
In UK medication on prescription is VAT free if you pay for prescriptions
(and totally free of course if eligible for free prescriptions)

As said, I was referring to the VAT rate applied to vaping
& the different examples plus why the general 20% VAT might be applied to simplify it at most retailers

It would be interesting to see if say people like Vape88 are applying 20% or 5% where applicable to juice
as it drastically effects the ultra slim margins on a bottle of £1 juice

eg:
£1 rrp is 83.3333p with 20% VAT then applied = £1
£1 rrp is 95.2380 with 5% VAT then applied = £1

Being that the shop needs to make a markup on this (10~20% where possible)
then the wholesale price means the margin on a single bottle is even tighter
But due to the mass volume that they are produced in, they are still able to turn a profit
(plus the VAT can be reclaimed by businesses registered for VAT)
But the difference in 5% or 20% VAT can make a difference to rrp for both customer & business alike
(as said the VAT can be reclaimed, customer in general pays)

Maybe some retailers can enlighten me if they charge varying rates of VAT or only 5% or 20%
or as I suspect they just apply a general rate to simplify orders
Do the retailers only charge 5% on all products as they can classify all as NR stuff - I'm unsure
(never really studied the receipt/invoice in detail to see if I'm paying VAT & at what rate)

But as said I'm making big savings even if paying 20% VAT on most UK stuff
(compared to around 70% Tax/Duty/VAT on the old expensive stinkies)

It's funny because my Doctor knew i wanted to quit but refused to prescribe anything, i had to be dying in hospital before i was prescribed patches and a Nic Inhaler which was useless imho though i suppose it must of stopped me climbing the walls while on it.

That was exactly like my situation - probably about 10 years ago, before vaping became recognised by UK Health etc...
Doctor was an absolute tosser, I was fucking fuming as I left - and lit up a fag outside straight away
(oh the fucking irony of it all)

 

[Harrison Wilkins]

I think it’s justified and logical, I’m only for
better even for a healthy lifestyle!)

 

[REJUICED]

Maybe some retailers can enlighten me if they charge varying rates of VAT or only 5% or 20%

We were a whisker away from filing 5% on a tax return some 3 years ago, and risking a court case against HMRC.
Usually, it takes a judge to decide, with cases on the fence like this. If one company wins it paves the way for all vape vendors to charge 5% based on the court's decision.
However, we were advised by a tax specialist that we would likely lose. he advised we should charge the full 20% on all products, although I strongly believe we should be charging 5%.

Shame, I'd love to cut all prices by 15%. Maybe, a larger company with more resources than us, would be willing to fight HMRC in court.

I've spoken to a local vape shop owner that is actively filling at 5%, I assume it's slipping under HMRC's radar and risks being stung with a huge bill down the road.

 

[Fuctifino]

We were a whisker away from filing 5% on a tax return some 3 years ago, and risking a court case against HMRC.
Usually, it takes a judge to decide, with cases on the fence like this. If one company wins it paves the way for all vape vendors to charge 5% based on the court's decision.
However, we were advised by a tax specialist that we would likely lose. he advised we should charge the full 20% on all products, although I strongly believe we should be charging 5%.

Shame, I'd love to cut all prices by 15%. Maybe, a larger company with more resources than us, would be willing to fight HMRC in court.

I've spoken to a local vape shop owner that is actively filling at 5%, I assume it's slipping under HMRC's radar and risks being stung with a huge bill down the road.

Thanks for reply

Agreed - probably easier to follow advice & apply 20% than risk 5% and become liable from HMRC
Legal professionals will offer sound safe advice and as stated is down to how it is determined in a court of law

I guess the argument is that vaping could be proved as a "Smoking Cessation Product"
and has a higher success rate than other methods to quit smoking, backed by medical studies and us lot on here

But the counter will be that though a much higher success rate, more ex-smokers continue to vape after they quit
than the people who quit by other products like big pharma Nicorette products
Though a much lower success rate, people who do manage to quit successfully (a lower percentage),
do tend to actually quit completely & not continue to use those products say a year later like vaping

But they have quit smoking - yeah but they have just migrated to another form of nicotine replacement
Well that tank/juice qualifies as part of "Smoking Cessation Product", but that 0mg juice or cotton doesn't
(yeah a bit of a minefield perhaps and needs revising or better clarification)

Big Pharma could be OK if they charge only 5% on £20 packet of gum
5% means gum cost £19:05 ex VAT - more profit
20% means gum cost £16:67 ex VAT - difference of £2:38 to be made - WTF ???

So you was given sound & safe advice, ergh-ing on the side of caution in relation to VAT rate
in the end it is the customer who usually pays but as said even then we are still making large savings over smoking

as said, thanks for your response about you & your company