Wednesday, February 8, 2012

Hi my friend is a self employed hair dresser in london so she pays the owner of the salon 50%?

and now he has told her she has to pay 17.5% VAT does anybody know why and what it is for as I thought you only paid VAT on things you buy .????Hi my friend is a self employed hair dresser in london so she pays the owner of the salon 50%?
You have to pay VAT on goods and services. The supply of the chair is a service and so if the salon owner is VAT registered, he has to charge VAT on the chair rent.