VAT change on malt?

[Moley]

I visited my LHBS this afternoon and couldn't help noticing that many of their prices seem to have risen quite dramatically.

I thought I would get some barley as I would like to get another brew underway, maybe not this weekend, more likely to be next weekend, and although their crushed pale malt has been £1.80 a kilo it has suited me to be able to nip up there on a Friday to collect some. It is usually pre-weighed in 3kg bags for £5.40 or I can ask them to weigh any other quantity.

Today I picked up two 3kg bags and was somewhat surprised when adding up my purchases the woman behind the counter said “two at £6.90”. When I asked if she had made a mistake she said that changes made in the last few weeks mean that VAT is now chargeable on malt.

Is that right? No-one else has mentioned anything on the forum.

I paid it, just this once, as I want to brew and can't be bothered to place an online order this side of Christmas.

While I appreciate the adage of “use it (your LHBS) or lose it”, surely £2.30/kg is just taking the ****? I think they may have seen the last of me.

 

[Mark1964]

we have not heard anything are you sure she wasnt pulling your leg so to speak

 

[Wez]

New one on me.

 

[the shadow]

think there may have put the vat up before jan as its going uo to 20% in jan 2011

 

[highwayman]

Perhaps Rob from Malty Miller will answer this one! Malt has always been VAT free!

 

[Wez]

Lots of google searches produced SFA for me.

 

[Smod]

The prices of "commodities" have gone up due to bad harvests or "Government Money Printing". Expect most things essential to go up over the coming years and try to get the best bulk prices you can.
:

 

[dennisking]

Why am I not suprised :hmm:

 

[ricardo]

Base price of the commodities has risen considerably......and then you have got the increase in road fuel & other energy costs to add on as well......diesel is now £1.25 per litre.
All these costs are now so big the retailers are just passing them on.......
Mind you the excuse about the VAT is taking the p*ss....your LHBS should check their suppliers invoice........

 

[BarnsleyBrewer]

Better off buying a 25kg sack plus enough hops to cover the malt use every 6 months and storing them well.
I was a good supporter of my local market stall that did brewing supplies but I'd never seen or used a quality fresh hop until I started buying 100g vacuum sealed packs from web sites.

BB

 

[Springer]

Now I am no commidieties dealer but as far as I can tell malting barley goes for £200 a ton. Thats £5 per bag (25 kilos) to the maltster.
HB shop price is about £30, everyone need to make a profit, I know. But if the price of barley rises by 100 % :shock: doesn't that make the finished product £35 :?
Or does everyone have a dip all the way up the chain, yes thats what happpens :evil:
:
Happy brewing anyway

 

[jamesb]

Bullcrap. There is no vat on malt (zero rated) whether you're a brewer, hbs or home shopper. It's classed as a foodstuff and a basic essential of life.

Prices have gone up though. We're paying 16.90 a sack in ton quantities, up from 16.50. Pre crushed.

 

[snail59]

Taken from the H M Revenue & Customs web site.

3.7.4 Ingredients for home beer and wine making

Products that are canned, bottled, packaged or prepared for use in home wine or beer making are standard-rated. This includes:

kits for home brewing, wine making etc;
retail packs of hopped malt extract, malted barley, roasted barley, hops;
special wine and brewers’ yeasts;
grape concentrates; and
retail packs of foods, which are specialised to home wine making, such as dried elderberries or sloes for making country wines.
You must also standard-rate any general food product that you hold out for sale specifically for home wine making or brewing, such as fresh, dried or canned fruit, fruit juices and concentrates, barley, glucose and plant malt extract. In this context, you hold them out for sale for home brewing and wine making if you:

sell them through a retail outlet that specialises in home brewing and wine making materials;
sell them in the home brewing and wine making department or section of a general outlet; and
label, advertise or otherwise display them as materials for home brewing or wine making, or provide with them or on their packaging any brewing or wine making recipes, or instructions for using them in the making of beer or wine (for example, the amount of sugar required for their fermentation or the type of yeast to be used).

 

[31bb3]

I was under the impression the VAT increase was not coming into effect until the new year. I think maybe the HBS is pulling a fast one. :wha:

 

[Greg]

Vat is chargeable on both malt and hops when it sold for home brewing purposes and this has always been the case. I have spoke to the vat offices ages ago who confirmed this.

Many of the maltings and hop merchants have selling malt without vat to both breweries and home brewers and home brew suppliers but this is not correct and most are now charging vat.

Most decent home brew companies will be vat registered and will have been charging vat for sometime so you should not therefore see an increase in price.

Those who are not vat registered may now increase their prices as they will not be able to claim back the vat from the supplier and therefore although they are not actually charging vat there costs have gone up.

This will effect both hops and malt.

 

[BarnsleyBrewer]

Vat is chargeable on both malt and hops when it sold for home brewing purposes and this has always been the case. I have spoke to the vat offices ages ago who confirmed this.

Many of the maltings and hop merchants have selling malt without vat to both breweries and home brewers and home brew suppliers but this is not correct and most are now charging vat.

Most decent home brew companies will be vat registered and will have been charging vat for sometime so you should not therefore see an increase in price.

Those who are not vat registered may now increase their prices as they will not be able to claim back the vat from the supplier and therefore although they are not actually charging vat there costs have gone up.

This will effect both hops and malt.

******* Tories & (Clegg)

 

[Moley]

Many of the maltings and hop merchants have been selling malt without vat to both breweries and home brewers and home brew suppliers but this is not correct and most are now charging vat.

I confronted my HBS via their own forum and it seems this is precisely what has happened, nothing to do with gubbinment or "they curs'd horse leeches o' th'excise" but an oversight by a supplier which has now been corrected.

 

[Greg]

It will only effect those smaller retailers who had a previous advantage by not having to charge or pay VAT on those materials.

We have always charged VAT on hops and grains and the fact that we now get charged it from the suppliers makes no odds as we can claim that cost back anyway.

You will most likely see an increase from quite a few of the cheaper suppliers as they could previously charge 17.5% less and still maintain the same margin. They can now either take a hit on the margin or increase their prices.

It also depends on the suppliers charging VAT but I think most now are, definitely Warminster Maltings and Charles Faram now charge VAT to none brewery customers.

You may find breweries will still supply you with not VAT supplies but they run the risk of getting caught on a VAT inspection and having to pay the VAT on all those supplies which can also be backdated.

There is also most likely to be an increase in barley prices next year as a lot of farmers will plant wheat due to the increased demand and price. Not sure how much this will effect us but there will almost definitely be an increase.

Homebrewing will still be the cheapest and best way to get a decent pint though!

 

[ohbeary]

Cheers for the tip snail59 but I tend to gather my juices from non wine making suppliers and the hedges