Vat Question

walshfin

Hi
I am looking to set up an eCommerce site that sells a novelty Christmas item . The item consists of a children's book and a plush toy of a character from the book.
I am aware that children's picture books have a VAT rate of zero percent and plush toys have a VAT rate of 23% as the book is being sold with a plush toy would the product now fall under the 23% rate .

Any help would be much appreciated.

y0ssar1an22

sounds like a multiple supply for vat purposes:

https://www.revenue.ie/en/vat/charging-vat/vat-and-mixed-supplies-of-goods/index.aspx

What is a multiple supply?
A multiple supply is where each of the items being sold together for one consideration is capable of being supplied independently in its own right. This means that each part of the supply is physically and economically dissociable from the other parts of the supply.

The consideration for a multiple supply must be apportioned between each of the individual supplies for the purposes of charging VAT.


so you could apportion vat using the same ratio as the 2 items cost you to purchase.

walshfin

Thanks I will look it into more ,now that I know where to start .

Darc19

As above.

If you buy a big Mac meal have a look at the receipt and you'll see the food and drink apportioned to the different vat rates.

As for sales, if it's a one item website, it can be very difficult to garner sales from a standing start